Ukrainian government refused to renew the contract, which expired on 1st January, 2025, and which regulated the supply of natural gas from Russia to Europe through Ukraine.

“Refusal to extend the deal with Russia and the unilateral termination of gas supplies mark a historic milestone” – Said Ukrainian Energy Minister German Galushchenko.

The Ukrainian move came despite strong opposition from some EU members who rely on Russian energy.

However, in a statement on Wednesday, Galushchenko described the decision as a “historic event.” “Russia is losing markets and will face financial losses. Europe has already made the decision to abandon Russian gas,” he said.

The shutdown also affects a pipeline that crosses Ukraine and serves Slovakia, which was also a recipient of Russian gas. Slovak Prime Minister Robert Fico expressed concern about the halt of the gas transit deal and threatened to cut off electricity supplies to Ukraine if the agreement is not extended. Fico slammed Brussels’ acceptance of the situation as “absolutely irrational and wrong,” stressing that sustainable flow of gas is “in the interest of all EU citizens.”

At the same time, public transport stopped in Moldova, power outages swept the country, and many apartment buildings lost heating and water supply. The Moldovian energy company reported that they have switched to black coal, but they only have emergency reserves, which may only last for the next 50 days.

In addition, Bloomberg reported last week that Slovakia, Hungary, Austria, and Italy are pursuing alternative strategies to try to ensure a continued flow of Russian natural gas.

Vladimir Putin said last week that Russia has always tried to “depoliticize” the issue of gas deliveries, stressing that Moscow has never refused to supply the EU with energy. He added that Russian company Gazprom will be able to withstand the disruption, while warning that EU consumers will bear the brunt of Kiev’s move.