The Urengoy-Pomary-Uzhgorod pipeline, a significant Russian natural gas export, has been halted due to Ukraine's refusal to renew a transit agreement, marking the end of Moscow's dominance over Europe's energy supply. The European Union has diversified energy sources and improved infrastructure to handle non-Russian gas supplies, with alternative supplies arranged by Slovakia and Austria.
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Russia's gas supply to Europe has been halted as a result of Ukraine's refusal to renew a transit agreement.
It is also known as the Bratstvo Pipeline or Brotherhood Pipeline, it is one of Russia's major natural gas export pipelines. It is partially owned and operated by Ukraine.
The pipeline was constructed between 1982 and 1984. Its official inauguration ceremony took place in France.
The pipeline runs from Siberia's Urengoy gas field via a compressor plant at Pomar in Mari El to Uzhhorod in Western Ukraine. From there, it supplies natural gas to Central and Western European countries.
The pipeline crosses the Ural and Carpathian mountains and over 600 rivers, including the Ob, Volga, Don, and Dnieper rivers.
Ukraine halted the flow of Russian gas to Europe by refusing to renew the transit agreement with Russia. This ends Moscow's decades-long dominance over Europe's energy supply.
Ukraine justified its decision as a matter of national security, mentioning the ongoing war.
The European Union had planned for such a situation by diversifying its energy sources.
Over the last few years, the EU has reduced its dependence on Russian gas by increasing imports of liquefied natural gas (LNG) from countries such as Qatar, the US, and Norway.
The EU has also improved its infrastructure to handle non-Russian gas supplies, smoothing the transition and avoiding significant price increases for consumers.
Several EU countries, including Slovakia and Austria, had already arranged alternative supplies before the stoppage.
Slovakia diversified its sources by securing gas from Hungary, Austria, the Czech Republic, and Poland. Austria prepared alternative supply routes to mitigate the impact.
Hungary continues to receive Russian gas via the TurkStream pipeline, which runs under the Black Sea.
The interruption of Russian gas flows has serious consequences for both sides. Ukraine loses $800 million per year from transit fees, while Russia loses nearly $5 billion on gas sales.
At its peak, Russia controlled 35% of Europe's gas supply, but the war has drastically reduced this share, with Russian exports now accounting for just 8%.
Gas prices increased to record highs in 2022 due to reduced supply from Russia, however, the EU has compensated for these losses by purchasing more LNG and sourcing gas from countries like Norway, Qatar, and the United States. This diversification of energy sources has helped stabilize prices and supply in the EU.
The future of Russian gas in Europe is uncertain following the closure of major gas routes through Ukraine and the Yamal-Europe pipeline through Belarus. Russia continues to export gas to Turkey and Hungary via TurkStream, but its presence in the European market has significantly decreased. The war has permanently altered Europe's energy security, pushing the EU to diversify and become more independent of Russian energy supplies
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