Ukraine Marks Historic First with Arrival of US Natural Gas Shipment, Reducing Dependence on Russia
A five-year agreement for the transit of Russian gas to Europe via Ukraine is set to come to an end on December 31.
Ukraine has received its inaugural shipment of liquefied natural gas (LNG) from the United States, representing a significant advancement in Ukraine’s strategy to reduce energy dependencies on Russia amid deteriorating relations with its eastern neighbor.
The LNG cargo—approximately 45,000 tons—arrived in Ukraine through a Greek terminal in the Mediterranean on December 27, as reported by DTEK, the largest private energy company in Ukraine. Despite the fact that the United States supplies around 40 percent of Europe’s LNG imports, this marks the first direct acquisition of U.S.-sourced LNG by Ukraine.
While European nations have been diminishing their reliance on Russian gas imports since the invasion of Ukraine in 2022, LNG that transits through Ukraine still constitutes about 5 percent of the European Union’s (EU) overall imports.
“The arrival of this LNG shipment underscores DTEK’s commitment to enhancing energy security for both Ukraine and Europe,” stated DTEK CEO Maxim Timchenko. “Such shipments provide the region with a reliable and adaptable source of energy while further diminishing Russia’s sway over our energy landscape. We express our deep gratitude to the United States for its significant contribution to Europe’s energy stability through these shipments.”
As the year draws to a close, the five-year agreement for Russian gas flows to Europe through Ukraine is on the verge of expiration on December 31. In a televised address on December 26, Russian President Vladimir Putin noted that the opportunity for a new gas transit agreement with Ukraine, which facilitates LNG to Slovakia, the Czech Republic, and Austria, has lapsed.
“They have announced that they will not renew the contract,” Putin stated, claiming that Ukraine’s refusal to extend the transit agreement amounts to punishing Europe.
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“There is no contract in place, and it is impossible to finalize one in just 3-4 days,” Putin remarked, adding that Russia is prepared to deliver gas to Europe via Poland through the Yamal-Europe pipeline.
Ukraine’s Prime Minister Denys Shmyhal stated in mid-December that Kyiv was ready to formulate an agreement to allow gas transit through its territory to Europe, explicitly dismissing any extension of existing agreements with Russia.
“With this significant agreement, we will enhance Ukraine’s natural gas supply security, support ongoing recovery and economic development in the region, and further bolster European energy security,” commented Mike Sabel, CEO of Venture Global, in a statement.
The initial shipment of U.S.-sourced LNG to Ukraine coincides with President-elect Donald Trump’s recent warning of potential tariffs on EU nations unless they increase their purchases of American oil and gas.
Trump’s tariff warning specifically addressed the EU–U.S. trade imbalance, which favored Europe and totaled approximately $57 billion in 2023.
