Ukraine has received its first shipment of liquefied natural gas (LNG) from the United States, marking a significant step in European efforts to reduce dependency on Russian fossil fuels.

Since the onset of Russia’s full-scale war in 2022, a revenue from fossil fuel exports generated approximately $440 billion used for funding of Russia’s military operations in Ukraine.

In response, Western nations have imposed a series of sanctions aimed at curtailing its energy revenues. However, China and India have emerged as significant buyers of Russian oil and gas instead, often bypassing Western restrictions.

The shipment, received by Ukraine’s largest private energy company DTEK, arrived at a Greek LNG terminal on 27 December, according to the DTEK’s press release.

The delivery coincides with escalated Russian attacks on Ukraine’s energy infrastructure. The latest attack on Christmas Day left more than half a million people without heating, water, and electricity.

It also arrives days before the expiration of a five-year Russian gas transit agreement through Ukraine and weeks ahead of Donald Trump’s potential return to office.

“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,” said DTEK CEO Maksym Tymchenko.

The transaction represents Ukraine’s first direct LNG purchase from the US, despite Europe currently sourcing 40% of its LNG imports from American suppliers, according to the Financial Times. 

The cargo, carrying approximately 100 million cubic meters of gas, arrived at Greece’s Revithoussa LNG terminal on Friday aboard the Gaslog Savannah. DTEK’s pan-European trading subsidiary, D.TRADING, purchased the entire shipment, which will be re-gasified and distributed through EU and Ukrainian gas networks.

The shipment is part of a broader agreement between DTEK and American company Venture Global, announced in June. FT reports that the contract extends through 2026, with an additional separate 20-year LNG purchase agreement in place.

“This is not just a cargo – it’s a strategic step. Despite Russia’s attempts to destroy our energy system during the war, we have achieved another victory on the energy front,” wrote Ukraine’s Presidential Office Head Andrii Yermak.

In October, Russia’s Arctic LNG-2 project has halted operations due to difficulties arising from international sanctions. Since August, the project has been unable to secure buyers for its LNG shipments, even after offering discounts of up to 40%. 

Related:

• Russia’s major gas project Arctic LNG-2 stalls under sanctions
• “War tax” on Russian LNG is key to starving Kremlin’s war chest
• UK imposes new sanctions on Russian LNG sector
• Reuters: Russia’s gas ambitions hit snag as sanctions force Arctic LNG 2 to suspend operations
• FT: EU helps sell on over 20% of liquefied natural gas imports from Russia
• Europe must clamp down on Russian oil flows through Türkiye