Russian gas era in Europe ends as Ukraine stops transit

Russian gas era in Europe ends as Ukraine stops transit

Sub: IR

Sec: Places in news

Context:

• On New Year’s Day, Russian gas exports to Europe via Soviet-era pipelines running through Ukraine were halted, marking the end of Moscow’s decades-long dominance over European energy markets.
• This stoppage came after Ukraine refused to renew a transit agreement with Russia.

Impact on European Union:

• The European Union is unlikely to face any major disruptions in energy prices. This is in stark contrast to the gas supply disruptions in 2022, which sent energy prices skyrocketing and worsened the EU’s cost-of-living crisis.
• The EU, prepared for this scenario and has reduced its dependence on Russian energy by sourcing gas from Norway, Qatar, and the U.S.
• Many EU nations, such as Slovakia and Austria, have already secured alternative energy supplies. Hungary, however, will continue receiving Russian gas through the Turk Stream pipeline under the Black Sea.
• However, Transnistria, a pro-Russian breakaway region in Moldova, was affected, with heating and hot water services cut off for households.

Nord Stream pipeline:

• The Nord Stream pipeline, which connected Russia to Germany via the Baltic Sea, was sabotaged in 2022.

Yamal-Europe pipeline:

• The Yamal–Europe natural gas pipeline is a 4,107-kilometre-long pipeline connecting Russian natural gas fields in the Yamal Peninsula and Western Siberia with Poland and Germany, through Belarus. The pipeline was shut down in 2022.

Major gas pipelines from Russia to Europe: