Ukraine has stopped the transit of Russian gas
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Economics
Publication date

Ukraine has stopped the transit of Russian gas

Transit of Russian gas through Ukraine has been stopped
Source:  online.ua

On the morning of January 1, Ukraine, as previously warned, stopped the transit of Russian gas. The gas transportation system is operating in a non-transit mode.

Points of attention

  • This decision will have important consequences for the country and the gas market, and will also deal a blow to the Russian military machine.
  • The Ukrainian gas transmission system operator was preparing for this step by increasing guaranteed capacities for gas supply to Ukrainian and European consumers.
  • From January 1, 2025, the gas transportation tariff for domestic consumers will increase fourfold.

Transit of Russian gas through Ukraine has been stopped

As reported by the GTS Operator of Ukraine, at 07:00 the Agreement on Interaction between LLC "GTS Operator of Ukraine" and PJSC "Gazprom" for Physical Connection Points of the Russian Federation-Ukraine between the gas transportation systems of Ukraine and the Russian Federation dated December 30, 2019 came to an end.

Back in December 2024, official Kyiv warned that it planned to stop transporting natural gas from the Sudzha entry point on Ukraine's eastern border to the exit points on the western and southern borders.

After that, the GTS Operator of Ukraine informed international partners about this in accordance with the established procedure.

The General Director of the Ukrainian State Transport and Communications Service, Dmytro Lippa, has already made a statement on this matter.

The Ukrainian gas transmission system operator has prepared the infrastructure in advance to operate in a zero transit mode and provide reliable gas supply to Ukrainian consumers. The company's staff is ready to work in new conditions, he stressed.

Photo: facebook.com/gas.tso.ua

How Ukraine prepared for the implementation of this decision

It is known that the GTS Operator of Ukraine has agreed to increase guaranteed capacities to ensure the possibility of supplying gas both to Ukraine and through Ukraine to European consumers.

What is important to understand is that last year, Ukraine received guaranteed capacities for the first time, increased in the southern direction — this is the "Vertical Corridor", and also obtained guaranteed capacities from Poland.

The second direction of the Company's preparation for zero transit was the optimization of the cost part. Natural gas consumption for its own needs was significantly reduced, and a significant number of assets not involved in the operation of the gas transportation system were optimized.

It is also worth recalling that from January 1, 2025, the tariff for gas transportation for domestic consumers will increase fourfold — from 124.16 to 501.97 UAH per 1,000 cubic meters.

The decision is directly related to the cessation of Russian gas transit.

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