Russian gas supply for transit via Ukraine ends as Gazprom's transit contract with Kiev expires

MOSCOW. Jan 9 (Interfax) - Russian gas supply for transit via Ukraine has ended as the transit contract with Kiev expired, Gazprom said in a statement on January 1.

"Gazprom was deprived of the technical and legal opportunity to supply gas for transit through the territory of Ukraine," the statement said.

"The documents signed on December 30, 2019, expired at 8:00 a.m. on January 1, 2025. These are the agreement between Gazprom and Naftogaz of Ukraine on organizing Russian gas transmission through the territory of Ukraine and the agreement on interaction between the operators of gas transmission systems of Russia and Ukraine: Gazprom and Gas Transmission System Operator of Ukraine. Due to the repeated and explicit refusal of the Ukrainian side to extend these agreements, Gazprom was deprived of the technical and legal opportunity to supply gas for transit through the territory of Ukraine from January 1, 2025," it said.

Ukrainian transit capacities were not put up for booking auctions, as is customary on the European gas market.

"Russian gas supply for transit through the territory of Ukraine stopped at 8:00 a.m.," the statement said.

Taking into account the force majeure declared by Ukraine on one of the transit routes, it was possible to pump up to 42.4 million cubic meters per day, or about 15 billion cubic meters per year, through Ukraine since May 2022.

Among Russian gas consumers in that market, Austria said sh0rtly before the end of 2024 that it would stop taking Russian gas and escalated the situation in the arbitration procedure. Slovakia called for continuing gas supply.

Moldova is yet another recipient of Russian gas through Ukraine. It agreed with Gazprom in 2021 on conducting an audit of Chisinau's historical gas debt. The protracted debt issue gives Gazprom the right to stop gas supplies at any time. Moldova found consultants who questioned the $709 million debt, while Moldovan officials expressed their willingness to pay only $9 million.

Moldovan Energy Minister Victor Parlicov visited Gazprom head Alexei Miller in St. Petersburg in November 2024. Gazprom said in a press release after the meeting that the sides discussed both "supply options" and the debt. Given Chisinau's refusal to settle the debt, Gazprom informed Moldova that it would limit gas supply to Moldova to zero cubic meters per day starting at 8:00 a.m. on January 1, 2025, for the breach of payment obligations.