Overdependence in Europe on Russian Gas

"[Kyiv has halted the transit of Russian gas supplies to European clients] in the interests of national security."

"This is a historic event. Russia is losing markets and will incur financial losses."

"Europe has already decided to phase out Russian gas, and [this] aligns with what Ukraine has done today."

Herman Halushchenko, Ukrainian energy minister 

Gas Pipeline   Canva

 

Russia supplied close to 40 percent of the European Union's pipeline natural gas before Moscow decided to invade Ukraine. There were four pipeline systems through which gas flowed from Russia to the European market; one under the Baltic Sea, one through Belarus and Poland, one through Ukraine and one under the Black Sea, through Turkey to Bulgaria.

Once the conflict began between Russia and Ukraine, Russia ceased most of its gas supplies through the Baltic and Belarus-Poland pipelines, after it had demanded payment in rubles and those of whom the demand was made, balked. An act of sabotage resulted, when the Baltic pipeline was blown  up. Europe soon experienced an energy crisis, with the Russian cutoff of supplies. Billions of euros was spent by Germany to establish floating terminals to import liquefied natural gas by ship, not pipeline.

European gas users, hit by soaring prices, began to reduce their use of gas for energy. Production from Norway and the United States stepped up to fill the gap, as the two largest suppliers of gas to Europe. As far as Europe was concerned, the Russians were using the energy cutoff as blackmail, punishing them for supporting Ukraine against the Russian invasion, and providing Ukraine with military weaponry for use against Russian troops.

As a result of these strained energy-trade relations, The Russian share of the European Union pipeline natural gas market dropped to eight percent in 2023. Austria and Slovakia had been served by the Ukrainian transit route through which the bulk of their natural gas from Russia flowed, forcing them to scramble for diversity supplies. Moldova became the hardest hit, receiving Russian gas through Ukraine; now bringing in emergency measures while its residents brace for a harsh winter amidst looming power cuts. 

 

Ukraine stops transit of Russian gas to the EU and Moldova   photo: gas.tso.ua

Gazprom announced a month ago its intention to halt gas supplies to Moldova beginning in the new year, citing unpaid debt where Moldova owes Gazprom almost $709 million. Households in Transnistria, Moldova's breakaway region that hosts Russian troops, has had heating and hot water supplies abruptly curtailed. Tiraspoltransgaz-Transnistria urged residents to gather household members in a single room, to hang blankets over windows and use electric heaters.

Ukrainian President Volodymyr Zelenskyy at a Brussels summit last month vowed that Kyiv would not permit Moscow use of the transits to earn "additional billions ... on our blood, on the lives of our citizens". The potential of gas flows continuing were possible, he suggested, should payments to Russia be withheld until the end of the war.

For the present, Russia's Gazprom stated it "has no technical and legal possibility" of sending gas through Ukraine. Russian natural gas was kept flowing to Europe through Ukraine's pipeline network, set up at a time when Ukraine and Russia were part of the Soviet Union -- under a five-year contract.