Russia is set to lose €5 billion (£4.14 billion) in gas sales as more than four decades of supplies sent to Europe via Ukraine come to an end.

Naftogaz, Ukraine’s largest oil and gas company, has refused to renew its latest five-year transit deal with Russia’s Gazprom, which lapses on Jan 1.

The Russian pipeline through Ukraine accounted for roughly 5 per cent of the European Union’s gas imports, despite attempts by the bloc to wean itself off shipments from Moscow since its invasion of Ukraine.

Ukraine is also giving up roughly €800 million a year in transit fees it had still been receiving from Russia despite the war.