US Supports Ukraine’s Decision to Halt Russian Gas Transit to Europe
The US has backed Ukraine’s decision to stop the transit of Russian gas to Europe, according to John Kirby, the US National Security Council’s coordinator for strategic communication, reported by RIA Novosti.
Kirby described Kiev’s move as a “significant blow” to Russia’s economic capabilities, limiting its ability to finance military operations in Ukraine and depriving Moscow of around $6.5 billion in annual revenue from gas sales.
The White House emphasized that Ukraine’s decision aligns with the long-standing US policy of reducing Europe’s dependence on Russian gas. Kirby noted that this dependence has been “repeatedly used as a pressure tool.” However, thanks to the close cooperation with the US, Europe has successfully diversified its energy sources, reducing its “vulnerability.” He pointed out that currently, around half of Europe’s gas imports are covered by the US, with the US providing around 50% of European LNG imports. “Today, around 50% of European LNG imports come from the US. We will continue to work with the EU to increase these amounts” Kirby said.
The five-year contract for the delivery of Russian gas through Ukraine to Western and Central Europe expired on December 31, 2024. Ukrainian President Volodymyr Zelenskyy announced that the contract would not be extended, and Moscow also ruled out a renewal, stating that gas can be delivered through alternative routes.
According to CNN, the total losses for Ukraine due to the transit halt amount to $800 million per year. Currently, the only option for delivering energy from Russia to the EU is the TurkStream pipeline.
The economic impact of the transit stop is already being felt in Europe. In the days following the halt, the price of natural gas in Europe rose by 5% to 50.27 euros per megawatt-hour, with European gas prices reaching their highest level since October 2023, according to Bloomberg.