Ukraine Receives First Ever Natural Gas Shipment From US as It Cuts Energy Ties With Russia

A five-year deal for Russian gas flows to Europe, which transit through Ukraine, is set to expire on Dec. 31.
Ukraine Receives First Ever Natural Gas Shipment From US as It Cuts Energy Ties With Russia
Model of LNG tanker is seen in front of the U.S. flag in this illustration taken on May 19, 2022. Reuters/Dado Ruvic/Illustration
Tom Ozimek
Updated:
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Ukraine has received its first-ever shipment of liquefied natural gas (LNG) from the United States, marking a pivotal step in Ukraine’s efforts to cut energy supply ties with Russia amid dismal relations between the two warring neighbors.

The LNG shipment—around 45,000 tons—was delivered to Ukraine via a Greek terminal in the Mediterranean on Dec. 27, according to DTEK, Ukraine’s largest private energy firm. While the United States supplies roughly 40 percent of Europe’s LNG imports, this is the first direct purchase of U.S.-sourced LNG by Ukraine.

While European countries have been reducing their reliance on gas imports from Russia since its invasion of Ukraine in 2022, LNG transiting Ukrainian territory still accounts for roughly 5 percent of the European Union’s (EU) imports.

“The arrival of this LNG cargo is a clear signal of DTEK’s determination to play its part in strengthening Ukraine and Europe’s energy security,“ DTEK CEO Maxim Timchenko said in a statement. ”Cargoes like this are not only providing the region with a flexible and secure source of power, but are further eroding Russia’s influence over our energy system. We are very grateful to the United States for the strategic contribution it is making to Europe’s energy security with such shipments.”

In a few days, a five-year deal for Russian gas flows to Europe, which transit through Ukraine, is set to expire on Dec. 31. Russian President Vladimir Putin said in a televised briefing on Dec. 26 that time has run out for a new gas transit deal with Ukraine, which brings LNG to Slovakia, the Czech Republic, and Austria.

“They announced that they would not renew the contract,” Putin said, saying that Ukraine was punishing Europe by its refusal to extend the transit agreement.

“There is no contract and it is impossible to conclude it in 3-4 days,” Putin said, adding that Russia was prepared to supply gas to Europe via Poland through the Yamal-Europe pipeline.

Ukraine’s Prime Minister Denys Shmyhal said in mid-December that Kyiv was prepared to devise an agreement to transit gas through its territory to Europe, and he ruled out extending any existing deal with Russia.

Friday’s shipment is the first of a number of expected LNG deliveries from the United States to Ukraine, according to DTEK, which in June signed a deal with U.S. energy group Venture Global for gas shipments through the end of 2026 from Venture Global’s Plaquemines facility. Additionally, DTEK will be buying up to 2 million tonnes per year of LNG from Venture Global’s CP2 facility over the next 20 years.

“With this landmark agreement, we will help bolster Ukraine’s security of natural gas supply, aid continued recovery and economic growth in the region, and further strengthen European energy security,” Mike Sabel, CEO of Venture Global, said in a statement.

Friday’s first-ever shipment of U.S.-sourced LNG to Ukraine followed President-elect Donald Trump’s recent threat to impose tariffs on EU countries if they don’t buy more oil and gas from the United States.

Trump’s tariff threat targeted the EU–U.S. trade deficit in favor of Europe, which in 2023 amounted to around $57 billion.

Tom Ozimek
Tom Ozimek
Reporter
Tom Ozimek is a senior reporter for The Epoch Times. He has a broad background in journalism, deposit insurance, marketing and communications, and adult education.
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