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What Happens When Russian Gas to Europe Via Ukraine Stops?

FILED - 05 February 2013, Russia, Sochi: The Gasprom logo is seen at a new power plant in Sochi, Russia. Photo: Jan Woitas/dpa-Zentralbild/dpa
FILED - 05 February 2013, Russia, Sochi: The Gasprom logo is seen at a new power plant in Sochi, Russia. Photo: Jan Woitas/dpa-Zentralbild/dpa
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What Happens When Russian Gas to Europe Via Ukraine Stops?

FILED - 05 February 2013, Russia, Sochi: The Gasprom logo is seen at a new power plant in Sochi, Russia. Photo: Jan Woitas/dpa-Zentralbild/dpa
FILED - 05 February 2013, Russia, Sochi: The Gasprom logo is seen at a new power plant in Sochi, Russia. Photo: Jan Woitas/dpa-Zentralbild/dpa

Russian President Vladimir Putin met Slovak Prime Minister Robert Fico in the Kremlin on Sunday, a rare visit by a European Union leader to Moscow as a contract allowing for Russian gas to transit through Ukraine nears expiry.
Ukrainian President Volodymyr Zelenskiy had said on Thursday that Kyiv could consider continued transit of Russian gas, but only on condition that Moscow did not receive payment until after the war - a condition it was unlikely to accept, Reuters said.
Putin said that day that it was clear there would be no new deal with Kyiv to send Russian gas through Ukraine to Europe.
Here is what happens if Russian gas transit via Ukraine is completely turned off and whom will be affected most.
HOW BIG ARE THE VOLUMES?
Russian gas supplies to Europe via Ukraine are relatively small. Russia shipped about 15 billion cubic meters (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-19.
Russia spent half a century building its European gas market share, which at its peak stood at 35%.
Moscow has lost its share to rivals such as Norway, the United States and Qatar since the Russian invasion of Ukraine in 2022, which spurred the EU to cut its dependence on Russian gas.
EU gas prices rallied in 2022 to record highs after the loss of Russian supplies. The rally won't be repeated given modest volumes and a small number of customers for the remaining volumes, according to EU officials and traders.
UKRAINIAN ROUTE
The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - which is now under control of Ukrainian military forces - in Russia's Kursk region. It then flows through Ukraine to Slovakia.
In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.
Russia's overall gas exports via the route have held steady despite the
stoppage
of flows from Gazprom to Austria's OMV in mid-November over a contractual dispute, and legal wranglings as other buyers stepped in to buy the volumes.
Austria still receives most of its gas via Ukraine, while Russia accounts for around two-thirds of Hungary's gas imports.
Slovakia takes around 3 bcm from energy giant Gazprom per year, also about two-thirds of its needs.
The Czech Republic almost completely cut gas imports from the east last year, but began taking gas from Russia in 2024.
Most other Russian gas routes to Europe are shut including Yamal-Europe via Belarus and Nord Stream under the Baltic.
The only other operational Russian gas pipeline route to Europe is the Blue Stream and TurkStream to Turkey under the Black Sea. Turkey sends some Russian gas volumes onward to Europe including to Hungary.
WHY DOES THE UKRAINIAN ROUTE STILL WORK?
While remaining Russian gas transit volumes are small, the issue remains a dilemma for the EU. Many EU members such as France and Germany have said they will not buy Russian gas anymore but the stance of Slovakia, Hungary and Austria, which have closer ties to Moscow, challenges the EU common approach.
The countries, who still receive Russian gas, argue it is the most economic fuel and also blame neighboring EU countries for high transit fees imposed on alternative supplies.
Ukraine still earns $0.8-$1 billion in transit fees per year from Russian gas transit.
According to Reuters calculations, Gazprom's total pipeline gas exports to Europe via all routes in 2024 have increased to 32 bcm from 28.3 bcm in 2023, when they collapsed to the lowest level since the 1970s.
Russia could earn around $5 billion on sales via Ukraine this year based on an average Russian government gas price forecast of $339 per 1,000 cubic meters, according to Reuters calculations.
Russia's gas pipeline export monopoly Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss of EU gas markets.
Russia has said it would be ready to extend the transit deal but Kyiv has repeatedly said it will not do it.
Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited.
Hungary
has been keen to keep the Ukrainian route open, but said it would continue to receive Russian gas from the south, via the TurkStream pipeline on the bed of the Black Sea.
The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal.
A senior source at Azeri energy company SOCAR told Reuters on Friday that Moscow and Kyiv have failed to agree on the deal brokered by Azerbaijan to continue Russian gas exports to Europe via Ukraine.

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Iran Scrambles to Swiftly Build Ties with Syria’s New Rulers

A handout photo made available by the Iranian presidential office shows Iranian President Masoud Pezeshkian (R) and Foreign Minister Abbas Araghchi (L) during the opening session of the Organization of Eight Developing Countries (D-8) summit in Cairo, Egypt, 19 December 2024. (EPA/Handout)
A handout photo made available by the Iranian presidential office shows Iranian President Masoud Pezeshkian (R) and Foreign Minister Abbas Araghchi (L) during the opening session of the Organization of Eight Developing Countries (D-8) summit in Cairo, Egypt, 19 December 2024. (EPA/Handout)
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Iran Scrambles to Swiftly Build Ties with Syria’s New Rulers

A handout photo made available by the Iranian presidential office shows Iranian President Masoud Pezeshkian (R) and Foreign Minister Abbas Araghchi (L) during the opening session of the Organization of Eight Developing Countries (D-8) summit in Cairo, Egypt, 19 December 2024. (EPA/Handout)
A handout photo made available by the Iranian presidential office shows Iranian President Masoud Pezeshkian (R) and Foreign Minister Abbas Araghchi (L) during the opening session of the Organization of Eight Developing Countries (D-8) summit in Cairo, Egypt, 19 December 2024. (EPA/Handout)

The Iranian government is scrambling to restore some of its influence in Syria as it still reels from the shock ouster of its close ally President Bashar al-Assad on December 8.

The Iranian president, Masoud Pezeshkian, is already facing multiple domestic and international crises, including an economy in shambles and continued tensions over its nuclear program. But it is the sudden loss of influence in Syria after the fall of Assad to opposition groups that is exercising Iranian officials most, reported The Guardian on Friday.

“In the short term they want to salvage some influence with the opposition in Damascus. Iranian diplomats insist they were not wedded to Assad, and were disillusioned with his refusal to compromise,” it said.

Foreign Minister Abbas Araghchi said in an interview this week: “We had long ago reached the conclusion that the continuation of governance in Syria would face a fundamental challenge. Government officials were expected to show flexibility towards allowing the opposition to participate in power, but this did not happen.”

He added: “Tehran always had direct contacts with the Syrian opposition delegation. Since 2011, we have been suggesting to Syria the need to begin political talks with those opposition groups that were not affiliated with terrorism.”

At the same time, Iran’s foreign ministry spokesperson insisted it only entered Syria in 2012 at Assad’s request to help defeat ISIS, continued The Guardian. “Our presence was advisory and we were never in Syria to defend a specific group or individual. What was important to us was helping to preserve the territorial integrity and stability of Syria,” he said.

Such explanations have not cut much ice in Damascus. Iran remains one of the few countries criticized by Ahmed al-Sharaa, the Hayat Tahrir al-Sham (HTS) leader.

Short honeymoon

Many Iranian officials are claiming the current victory lap being enjoyed by Türkiye in Syria may be brief as Ankara’s interests will start to diverge from the government led by the HTS.

Senior cleric Naser Makarem Shirazi said: “We must follow the Syrian issue with hope and know that this situation will not continue, because the current rulers of Syria will not remain united with each other”.

The conservative Javan newspaper predicted that “the current honeymoon period in Syria will end due to the diversity of groups, economic problems, the lack of security and diversity of actors.”.

Officially Iran blames the US and Israel for Assad’s collapse, but resentment at Ankara’s role is rife, ironically echoing Donald Trump’s claim that Syria has been the victim of an unfriendly takeover by Türkiye.

In his speech responding to Assad’s downfall supreme leader Ali Khamenei said a neighboring state of Syria played a clear role” in shaping events and “continues to do so now”. The Fars news agency published a poster showing the HTS leader in league with Recep Tayyip Erdogan, Benjamin Netanyahu and Joe Biden.

Iran’s Strategic Council on Foreign Relations questioned whether HTS would remain allies with Türkiye for long. It said: “Although Türkiye is only one of the main winners of Bashar al-Assad’s fall from power in the short term, Ankara can never bring a government aligned with itself to power in Syria. Even if HTS attempts to form a stable government in Syria, which is impossible, in the medium term, it will become a major threat to Türkiye, which shares an 830-kilometer border with Syria.”

Reliance on Türkiye

Former Iranian President Hassan Rouhani predicted a bleak future for Syria and Türkiye. “In recent weeks, all of Syria’s military power has been destroyed by Israel, and unfortunately, the militants and Türkiye did not respond appropriately to Israel. It will take years to rebuild the Syrian army and armed forces.”

Mohsen Baharvand, a former Iranian ambassador to the UK, suggested the Damascus government may find itself overly reliant on Türkiye. “If the central government of Syria tries to consolidate its authority and sovereignty through military intervention and assistance from foreign countries – including Türkiye – Syria, or key parts of it, will be occupied by Türkiye, and Türkiye will enter a quagmire from which it will incur heavy human and economic costs.”

He predicted tensions between Türkiye and the HTS in particular about how to handle the Syrian Kurdish demand in north-east Syria for a form of autonomy. The Turkish-funded Syrian National Army is reportedly ready to mount an offensive against the Kurdish Syrian Democratic Forces in Kobani, a Kurdish-majority Syrian town on the northern border with Türkiye.

Türkiye’s Foreign Minister Hakan Fidan said on Wednesday that if the issue were addressed “properly” Ankara would not seek a military intervention. “There is a new administration in Damascus now. I think this is primarily their concern now,” Fidan said.

More broadly, the Syrian reverse is forcing Iran to accelerate a rethink of its foreign policy. The review centers on whether the weakening of its so-called Axis of Resistance – comprising allied groups in the region – requires Iran to become a nuclear weapon state, or instead strengthen Iran by building better relations in the region.

For years, Iran’s rulers have been saying that “defending Iran must begin from outside its borders.” This hugely costly strategy is largely obsolete, and how Iran explains its Syria reverse will be critical to deciding what replaces that strategy.