Ukraine cuts off its last dependence on Russia, Moscow suffers losses, Europe becomes more worried, Kiev seeks to "protect itself"

The gas transit agreement between Ukraine and Russia, signed in 2019, will expire at the end of this year. Experts predict that this will be a big loss for Russia - a country that is losing billions of dollars in revenue due to Western sanctions.

Technicians work at a natural gas pumping station in Sayda, eastern Germany. (Source: AP)

Since Moscow launched a special military operation in Kiev in February 2022, Europe has sought other long-term gas supplies, including Norway and liquefied natural gas (LNG) from the United States.

Europe's gas imports from Russia have fallen by more than 90%.

Gazprom paid a heavy price when it announced a net loss of $7 billion in 2023.

Last year, Russia exported 14.6 billion cubic meters of oil via Ukraine - down nearly two-thirds from 41.6 billion cubic meters in 2021.

Although President Putin has expressed a desire to continue the transit deal, President Volodymyr Zelensky has vowed to cut Russia out of his country's transit network.

Meanwhile, on the Ukrainian side, the government could lose an important source of revenue and add to the uncertainty of Europe's energy supplies this winter.

Mr. James Hill, CEO of MCF Energy (UK) commented: “Ukrainian President Zelensky has firmly cut off the last dependence on Moscow by blocking the gas pipeline.

While this is a strong move in the right direction, it also poses a major challenge for Europe as the region's gas supply could be at risk."

The amount of gas flowing from Russia through Ukraine to Europe accounts for less than 5% of the continent’s supply. However, not renewing the agreement would not only damage Ukraine’s position as a reliable gas pipeline, but also put the country at risk of losing $800 million a year in transit fees.

According to Bloomberg , Ukrainian Energy Minister German Galushchenko said that the country has held transit talks with Azerbaijan, which supplies gas to eight European countries, but there are no specific proposals yet.

Deals with Kazakhstan and other suppliers in Central Asia could also be viable options, but time is running out.

"Both Kiev and Europe need to take a strong approach before and after the gas transit contract with Moscow expires to ensure energy security and stability. This is also a way to protect themselves from retaliation by the Russian authorities, if the agreement is not extended," Mr. German Galushchenko emphasized.

Source: https://baoquocte.vn/ukraine-cat-dut-su-phu-thuoc-cuoi-cung-vao-nga-moscow-ton-that-chau-au-them-lo-kiev-tim-cach-bao-ve-chinh-minh-286290.html