Following the recent expiry of a five-year deal, Russian gas is no longer being piped into the European Union through Ukraine. This development will bolster continental security in the long term, and may benefit Canada by nudging European states into importing more liquified natural gas (LNG) from North America.

Before the taps were turned off on Jan. 1, Russia had piped gas through Ukraine for decades. While annual Russian revenues from these exports were approximately US$5 billion (C$7.2 billion), Ukraine was paid only US$800 million in transit fees per year, of which approximately 80 per cent was spent on operational and maintenance costs.