The stop of Russian gas through Ukraine divides the EU

At 06:00 on New Year's Day, Russian energy giant Gazprom shut off the flow of fossil gas to Europe through Ukraine. The EU claims to be prepared for the stop, but the division is great among the union's countries.

» Published: January 01 2025

The stop of Russian gas through Ukraine divides the EU
Photo: Dmitri Lovetsky/AP/TT

The stop occurs after a five-year agreement on deliveries of Russian gas through Ukraine expired at the turn of the year.

"Due to the Ukrainian side's repeated and explicit refusal to extend these agreements, Gazprom was deprived of the technical and legal opportunity to deliver gas through Ukraine", Gazprom writes on Telegram.

Record-high gas price

However, both countries' leaders, Presidents Vladimir Putin and Volodymyr Zelenskyj, have said that the agreement would not be renewed.

Prior to the closure, the gas price rose on New Year's Eve to the highest level since November 2023, when it touched 50 euros per megawatt-hour (MWh). This despite the fact that the current gas is now estimated to account for only about five percent of European demand, according to Bloomberg.

"EU is prepared"

The closure reveals a rift within the EU on the view of Russian gas. The EU Commission's Ursula von der Leyen has set a goal to phase out Russian fossil fuels by 2027, while countries like Hungary and Slovakia, which partly rely on cheap Russian gas, had hoped for an extension of the agreement. Slovakia's Prime Minister Robert Fico, who has threatened Ukraine with cutting off electricity, warns that the stop will have drastic consequences for Europe. According to Fico, European consumers will be forced to pay up to 50 billion euros in extra gas costs per year and an additional 70 billion euros in higher electricity costs.

Stopping the gas flow via Ukraine will have a drastic impact on all of us in the EU, but not on Russia, says Fico in a video message on Facebook.

According to previous media calculations, the Russian state will, however, miss out on significant revenue as a result of the shutdown.

And Poland, which does not import any Russian gas, welcomes the stop and calls it "a victory".

Brussels is trying to downplay the potential effects and says that "the stop is expected and the EU is well prepared".

Reduced import after the war

The agreement to pump Russian gas through Ukraine to other European countries via pipelines dates back to the dissolution of the Soviet Union in 1991.

In 2023, Russian gas accounted for less than 10 percent of the EU's total import – a decrease from more than 40 percent before Putin's attempt to invade Ukraine.

The question of the gas stop is expected to be one of the topics of discussion when Prime Minister Ulf Kristersson arrives in Austria today for a two-day visit. Kristersson will, among other things, meet his Austrian counterpart, Chancellor Karl Nehammer, and President Alexander Van der Bellen.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Kent Concerts Spark Hotel Market
1 MIN READ

Kent Concerts Spark Hotel Market Boost in Stockholm

US Boosts Norwegian Salmon Imports
1 MIN READ

US Boosts Norwegian Salmon Imports Before Tariff Decision

IT Sector Sees Reduced Work
1 MIN READ

IT Sector Sees Reduced Work Hours and Pay Increase in New Agreement

Service Sector Slows as Index
1 MIN READ

Service Sector Slows as Index Drops Below 50 in Sweden

Economist Urges Swedish Savers to
2 MIN READ

Economist Urges Swedish Savers to Hold Steady Despite Tariff Impact

Stockholm Stock Exchange Drops 2.5
1 MIN READ

Stockholm Stock Exchange Drops 2.5 Percent Following Trump's Tariff News

Food Prices Stabilize as Supermarkets
3 MIN READ

Food Prices Stabilize as Supermarkets Compete for Shoppers

Gold Prices Soar to Record
1 MIN READ

Gold Prices Soar to Record Highs Following Trump's Tariff News

Colombia Plans to Acquire Swedish
1 MIN READ

Colombia Plans to Acquire Swedish Gripen Fighter Jets

Tokyo Stocks Drop Sharply Following
1 MIN READ

Tokyo Stocks Drop Sharply Following US Tariff Announcement

Global Leaders Rally Against Trump's
3 MIN READ

Global Leaders Rally Against Trump's Tariffs to Avert Trade War

US Finance Minister Urges Nations:
1 MIN READ

US Finance Minister Urges Nations: Hold Off on Retaliating to Tariffs

Trump's Tariffs Higher Than Expected,
2 MIN READ

Trump's Tariffs Higher Than Expected, Experts Warn of Lingering Uncertainty

Sweden Ready to Tackle Trump's
2 MIN READ

Sweden Ready to Tackle Trump's EU Tariffs, Says PM Kristersson

Trump's Tariffs Spark Global Economic
2 MIN READ

Trump's Tariffs Spark Global Economic Uncertainty, Experts Warn

Trump Announces 20 Percent Tariffs
3 MIN READ

Trump Announces 20 Percent Tariffs on EU Goods

APM Terminals Acquires Key Railway
1 MIN READ

APM Terminals Acquires Key Railway by Panama Canal

Volvo CEO Calls Trump's Tariffs
2 MIN READ

Volvo CEO Calls Trump's Tariffs a Messy Challenge for Swedish Industry

Amazon and AppLovin Eye TikTok's
2 MIN READ

Amazon and AppLovin Eye TikTok's US Operations for Acquisition

Wall Street Gains as Investors
2 MIN READ

Wall Street Gains as Investors Await Trump's Tariff Announcement

Tesla Sales Plummet in Q1,
1 MIN READ

Tesla Sales Plummet in Q1, Miss Analyst Expectations by Wide Margin

US Private Sector Adds 155,000
1 MIN READ

US Private Sector Adds 155,000 Jobs in March, Surpassing Expectations

China Limits US Investments as
1 MIN READ

China Limits US Investments as Trade Tensions Rise

Ben & Jerry's Co-Founder Seeks
2 MIN READ

Ben & Jerry's Co-Founder Seeks to Reclaim Brand from Unilever

Nintendo Switch 2 Launches June
1 MIN READ

Nintendo Switch 2 Launches June 5 with New Games and Features

Northvolt Labs in Västerås to
1 MIN READ

Northvolt Labs in Västerås to Lay Off 550 Employees

FI Warns of Rising Fees
2 MIN READ

FI Warns of Rising Fees for Housing Associations as Costs Climb

Volvo Cars Sees 10 Percent
1 MIN READ

Volvo Cars Sees 10 Percent Drop in March Sales, Electric Models Hit Hard

Stockholm Stocks Slide as Tariff
2 MIN READ

Stockholm Stocks Slide as Tariff Concerns Hit Major Companies

Genre image
1 MIN READ

Systemair CEO Roland Kasper Steps Down After a Decade

Dustin Announces Billion-Kronor Boost as
1 MIN READ

Dustin Announces Billion-Kronor Boost as Shares Drop 7 Percent

Folksam Divests Tesla Shares Over
2 MIN READ

Folksam Divests Tesla Shares Over Swedish Labor Dispute

Trump Set to Announce New
2 MIN READ

Trump Set to Announce New Tariffs as Global Markets Brace

Stockholm Stock Exchange Faces Decline
1 MIN READ

Stockholm Stock Exchange Faces Decline as Futures Point Downward

Trump's Tariffs Predicted to Slow
1 MIN READ

Trump's Tariffs Predicted to Slow Global Economy Growth

Construction Sector Sees Modest Growth
1 MIN READ

Construction Sector Sees Modest Growth with Housing and Government Boost

Asian Markets Show Mixed Reactions
1 MIN READ

Asian Markets Show Mixed Reactions Ahead of Trump's Tariff News

Sweden's Housing Market Faces Uncertainty
2 MIN READ

Sweden's Housing Market Faces Uncertainty as Interest Rate Fears Loom

Motorhome Registrations Surge 59 Percent
1 MIN READ

Motorhome Registrations Surge 59 Percent in 2025

Wall Street Closes Mostly Up
1 MIN READ

Wall Street Closes Mostly Up After Volatile Day