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InternationalEurope

Russia to Halt Gas Supplies via Ukraine, Signaling End of an Era for European Energy

by Manish Suyal November 16, 2024
written by Manish Suyal November 16, 2024 0 comments
Russia to Halt Gas Supplies
49

Russia has informed Austria that it will suspend gas deliveries through Ukraine starting Saturday, marking a significant step toward the shutdown of one of Moscow’s oldest gas-export routes to Europe. This move reflects the sharp decline in European reliance on Russian energy following the 2022 invasion of Ukraine.

Historic Pipeline Nears Closure

The pipeline, a key Soviet-era route for gas exports to Europe, is set to cease operations by the end of 2023. Ukraine has already announced its intention not to renew the transit agreement with Russia’s Gazprom, citing a desire to cut off profits that Kyiv says finance Russia’s war effort.

Russia’s decision to halt supplies to Austria leaves Hungary and Slovakia as the only European nations still receiving substantial gas volumes from Moscow, with Hungary now relying on the TurkStream pipeline that bypasses Ukraine.

Austria Responds to Gas Cutoff

Austrian Chancellor Karl Nehammer assured citizens that the country is prepared for the loss of Russian gas. “No home will go cold… our gas storage facilities are sufficiently full,” he said.

Austria’s largest energy supplier, OMV, confirmed it has alternative arrangements to meet demand, including imports from Germany, Italy, and the Netherlands. “The era of Europe relying on Russian gas is over,” said Ukrainian Foreign Minister Andrii Sybiha on X, emphasizing the need to end Moscow’s energy profits.

Broader Implications for Europe

Russia’s natural gas exports to Europe have drastically declined since 2022 when many European countries shifted to alternative sources, including liquefied natural gas (LNG) from the United States. The U.S., now the world’s leading gas producer, has expanded production to help fill the gap.

Austria, one of the first Western European nations to buy Russian gas in the 1960s, joins other EU countries that have significantly reduced their reliance on Moscow. Germany, once heavily dependent on Russian gas, saw supplies halt after the destruction of the Nord Stream pipelines under the Baltic Sea.

Political Underpinnings

The timing of Gazprom’s suspension has raised questions about its political motives. Ulrich Schmid, an expert in Eastern European studies, suggested the move might be Russia’s response to Austria’s political shift after the Russia-friendly Freedom Party was excluded from coalition talks.

Meanwhile, Russian President Vladimir Putin has indicated openness to resuming energy cooperation with Germany, provided Berlin shows interest. The Kremlin emphasized Russia’s history of fulfilling contractual obligations in the energy sector.

Energy Security in Focus

EU Energy Commissioner Kadri Simson reassured member states that alternative supply sources are sufficient to replace Russian gas. “There is no need for the continuation of Russian gas transiting via Ukraine to Europe,” she stated at a UN climate conference in Azerbaijan.

Declining Russian Gas Flows

In 2023, Russia transported approximately 15 billion cubic meters of gas through Ukraine—just 8% of its peak flows to Europe before the war. The International Energy Agency reported that the Ukraine transit route supplied 65% of the gas demand for Austria, Hungary, and Slovakia. However, Kyiv has announced plans to terminate the agreement by 2025.

Shifting Dynamics in European Energy

Gazprom’s latest move underscores the geopolitical tensions shaping Europe’s energy landscape. As European nations continue to diversify their energy sources, the era of heavy dependence on Russian gas is coming to a definitive close.


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