Zelensky Hails One of Russia’s ‘Biggest Defeats’ With Gas Cut

Ending the transit of Russian natural gas through Ukraine has dealt Moscow a significant blow in its attempts to use energy as a weapon, President Volodymyr Zelensky has said. Ukraine’s head of state made the comment in a Telegram post on January 1, the day after the expiry of an agreement with Russia through its energy firm Gazprom which means the fuel can no longer transit through the country to serve European customers. Zelensky said the ending of the deal “is one of Moscow’s biggest defeats.” Newsweek has contacted Gazprom for comment by email. President of Ukraine Volodymyr Zelensky on December 19, 2024 in Brussels. He said a Russian natural gas transit deal that ended on January 1 was a major defeat for Moscow. President of Ukraine Volodymyr Zelensky on December 19, 2024 in Brussels. He said a Russian natural gas transit deal that ended on January 1 was a major defeat for Moscow. Thierry Monasse/Getty Images Why It Matters In 2021, Russia was the world’s largest natural gas exporter but its sales of the resource have dipped sharply since Vladimir Putin’s full-scale invasion the following year, due in part to sanctions and efforts by Europe—its most lucrative market, to find alternative suppliers. Ukraine had repeatedly warned it would not renew the transit deal which Reuters reported accounted for around half of Russia’s total pipeline gas exports to Europe, curbing funding for Putin’s war machine. What to Know The transit deal ended on New Year’s Eve following a decade of fraught energy relations between Russia and Ukraine after Putin’s 2014 annexation of Crimea. Ukraine stopped buying Russian gas the following year but the transit deal still allowed the resource to be piped to Europe. Russia still exports gas via the TurkStream pipeline. Hours after Russian natural gas exports via Ukraine ceased, Zelensky posted on Telegram about Russia’s “cynical energy blackmail.” He said that when Putin became president in 2000, the annual gas pumping through Ukraine to Europe stood at over 130 billion cubic meters (bcm).” Today, the transit of Russian gas is 0,” he wrote. “This is one of Moscow’s biggest defeats.” Zelensky said that U.S. gas supplies and other partners will mean that “European energy dependence on Russia will be overcome.” On December 27, DTEK, Ukraine’s largest private energy company, took its first delivery of liquefied natural gas (LNG) from the United States, after the 100 million cubic meter LNG shipment docked in Greece. In noting the ending of the gas deal, Russian state news agency Tass reported that while Kyiv’s refusal to extend the agreement “deprived Gazprom of the technical and legal ability to supply fuel by this route,” it did tout how in 2024, Russia increased pipeline gas exports to Europe by 14 percent year-on-year. Zelensky acknowledged on Wednesday that while most European countries “have adapted” to the ending of Russian gas transit, allies must support Moldova which is heavily dependent on Russian supplies. In December, the country implemented a state of emergency in the energy sector amid concerns over the humanitarian impact of reduced gas supplies during the winter months. Residents in its breakaway region of Transnistria were left without centralized heating and hot water on Wednesday due to the transit cut, local energy company Tirasteploenergo said. What People Are Saying Ukrainian President Volodymyr Zelensky said on Telegram: “When Putin was handed power in Russia over 25 years ago, the annual gas pumping through Ukraine to Europe stood at over 130 billion cubic meters. Today, the transit of Russian gas is 0. This is one of Moscow’s biggest defeats.” Gazprom said in a statement: “due to the repeated and clearly expressed refusal of the Ukrainian side to renew these agreements, Gazprom was deprived of the technical and legal ability to supply gas for transit through the territory of Ukraine from January 1.” DTEK CEO Maxim Timchenko told Newsweek in a statement that the arrival of this LNG cargo was “a clear signal of DTEK’s determination to play its part in strengthening Ukraine and Europe’s energy security. “Cargoes like this are not only providing the region with a flexible and secure source of power, but are further eroding Russia’s influence over our energy system,” he added. What happens next The ending of the deal will see Ukraine will lose around $800 million a year in transit fees, Reuters reported, while Russian gas giant Gazprom will lose close to $5 billion in gas sales. There is also anticipation over the next move for Slovakia, which is also reliant on Russian gas. Its prime minister, Robert Fico, who has criticized the EU’s support of Ukraine, met the Russian leader in Moscow to discuss gas supplies. Fico had threatened “reciprocal measures” against Ukraine if it did not extend the arrangement, including stopping electricity exports to the country. Ukrainian Energy Minister German Galushchenko told Politico “I don’t think that they would do this.”