As Europe’s Russian gas era ends, Ukraine’s President Zelenskyy urges the U.S. to step up and supply more gas to the continent.
At a Glance
- Russia’s Gazprom ceased gas transit via Ukraine on January 1, 2025, marking a significant geopolitical shift.
- Ukraine received its first U.S. LNG cargo, signaling a move towards energy diversification.
- President Zelenskyy calls on the U.S. to increase gas supply to Europe.
- European LNG market expected to grow by 20% in 2025, primarily from U.S. and Qatar imports.
- Most EU states prepared for the change, but some countries like Moldova face energy shortages.
Russia Halts Gas Transit, Europe Seeks Alternatives
In a move that marks the end of an era, Russia’s Gazprom has ceased gas transit via Ukraine as of January 1, 2025. This development comes after the expiration of a five-year deal and signifies a major shift in Europe’s energy landscape. The stoppage affects gas flows to several European countries, forcing them to seek alternative sources and adapt their energy strategies.
Ukrainian President Volodymyr Zelenskyy has described this cessation as a significant defeat for Moscow. In response to the changing dynamics, Zelenskyy is now urging the United States to increase its gas supply to Europe, emphasizing the importance of transatlantic cooperation in ensuring regional energy stability.
Zelenskyy Urges U.S. To Supply More Gas To Europe After Ukraine Halts Flow Of Russian Gas https://t.co/0vxCSwnnAp #OAN
— One America News (@OANN) January 1, 2025
Ukraine’s Energy Diversification Efforts
As part of its strategy to reduce reliance on Russian energy, Ukraine has taken a significant step towards diversifying its energy sources. On December 27, 2024, Ukraine’s largest private energy company, DTEK, received its first U.S. LNG cargo at the Revithoussa LNG terminal. This move underscores Ukraine’s commitment to strengthening its energy security and reducing its vulnerability to geopolitical pressures.
The transition away from Russian energy is expected to be complex and uneven across Europe. While infrastructure for LNG is still developing, the European LNG market is projected to grow significantly. Imports are expected to rise by 20% in 2025, with the United States and Qatar emerging as primary suppliers.
Impact on European Countries
The cessation of Russian gas transit via Ukraine has varying effects on different European countries. While most EU member states have prepared for this change and are expected to cope, some nations face more significant challenges. Slovakia, for instance, anticipates increased costs for alternative gas routes and potential consumer price hikes in 2025.
Moldova, not an EU member, is severely affected by the gas stoppage. Energy shortages are impacting the country, particularly in the breakaway region of Transnistria. Moldova’s Prime Minister has denied any debt to Gazprom and accused Russia of using energy as a political weapon.
Europe’s Response and Future Outlook
In response to the changing energy landscape, the European Union has been actively seeking alternative gas sources from Qatar, the United States, and Norway since Russia’s invasion of Ukraine in 2022. The European gas infrastructure has been reinforced with new LNG import capacities, demonstrating the continent’s commitment to energy security and diversification.
“We did our homework and were well prepared for this scenario,” said Austria’s Energy Minister Leonore Gewessler.
While the immediate impact of the gas transit stoppage is not expected to raise gas prices in the EU due to anticipation and preparation, the long-term implications remain to be seen. As Europe continues to adapt to this new energy reality, the role of the United States as a potential major gas supplier becomes increasingly significant, underscoring the importance of transatlantic energy cooperation in the years to come.
