Ukraine will lose close to a billion dollars a year after the cessation of Russian gas transit

Published at: 03/01/2025 09:23 AM

Ukraine's decision to interrupt the supply of natural gas from Russian Federation company Gazprom to European countries through its territory will cost one billion dollars a year, Reuters said.

The agency also reported that to help offset the impact, Ukraine will quadruple gas transportation rates for domestic consumers, which could cost the country's industry more than 1.6 billion grivnas (38.2 million dollars) a year.

The supply of Russian gas to European countries through Ukraine was suspended since 8:00 (Moscow time) on January 1 due to Kiev's refusal to extend bilateral agreements.

The spokeswoman for the Russian Ministry of Foreign Affairs, Maria Zakharova, reported that “the first victim” of the measure is Germany, “which, after the destruction of the Nord Stream 1 and Nord Stream 2 gas pipelines, was forced to buy natural gas at significantly higher prices and had to shut down a series of important and legendary industries.”

“Now other countries of the European Union (EU), formerly economically prosperous and independent, will have to pay the price of American sponsorship,” he stressed according to a press release from Russia Today (RT).

For his part, President Vladimir Putin, assured that the Russian state company “Gazprom will survive this”, while stressing that his country will continue to increase its share of liquefied natural gas (LNG) in the world market.

Mazo News Team