Russian gas transit through Ukraine to be suspended from January 1, 2025

The transit of Russian gas through Ukraine will be suspended on the morning of January 1, 2025, in connection with the expiration of the relevant contract.

This was announced by Ukrainian Prime Minister Denys Shmygal, speaking in the Verkhovna Rada.  The transit agreement between Ukrainian Neftegaz and Russian Gazprom was signed at the end of 2019 for a period of five years. 

Gas from Russia is supplied to European countries through the territory of Ukraine. "As of today, we understand that the gas transit agreement expires on January 1, 2025. At 7 a.m., the transit will be physically closed due to the expiration of that agreement," Shmygal said.

Following the attack on the Kursk region of Russia, gas prices in Europe have reached their highest level since December 2023 and have increased by 12% since the beginning of August, the French newspaper Le Figaro reported, citing Rotterdam TTF gas prices (the EU is mainly guided by the prices of this gas).

At the end of last week, the price of gas was 40.58 euros per megawatt-hour (395-400 euros per 1,000 cubic meters – ed.). Although this is lower than the approximately 300 euros per megawatt-hour (around 2,950 euros per 1,000 cubic meters – ed.), which were recorded in 2022.

Prices have risen both due to uncertainty about the military operations and fears that Ukraine will stop transiting Russian gas. In 2023, Russia exported 14.54 billion cubic meters of gas to Europe via Ukraine, or 28.5% less than in 2022. The contract between Gazprom and Ukraine's Naftogaz expires at the end of this year, and Kiev has repeatedly stated that it will not extend it.

Recall that on August 6, the Kursk region of the Russian Federation was attacked by the Ukrainian Armed Forces. On August 12, it became known that 28 settlements in Kursk came under the control of the Ukrainian Armed Forces. The fate of 2,000 people in these 28 settlements is unknown.