Russia proposes rebuilding economic ties with Ukraine

The Russian memorandum, as reported by the TASS agency, suggests the gradual rebuilding of relations with Ukraine, particularly regarding natural gas transit.

Discussions on these topics took place in Istanbul, where delegations from both countries convened for the second time. Ukraine requires time to analyze the proposed conditions, Bloomberg notes.

The flow of Russian gas through Ukraine was halted on January 1, after Kyiv refused to extend the transit agreement.

This was one of the two routes through which Gazprom could deliver gas to Europe. Other routes have been closed or damaged, complicating the energy situation.

The closure of Russian gas transit through Ukraine at the beginning of 2025 brought Russia significant financial and strategic losses. It is estimated that Gazprom may lose between $5 and $6.5 billion annually due to the loss of the ability to export gas through this route.

Despite these challenges, Russia continues to supply gas to Serbia and Hungary through TurkStream, which bypasses Ukraine.

Russia must pay transit fees to countries the pipeline traverses, such as Turkey, Bulgaria, Serbia, and Hungary. Consequently, Turkey, as a key transit country, gains more control over gas supplies to Europe, which may influence price negotiations and delivery conditions.

According to Reuters, in May 2025, gas exports through TurkStream increased by 10.3% compared to April. On average, the volume was 1,624 million cubic feet of gas per day. Total deliveries through TurkStream in the first five months of 2025 amounted to approximately 254 billion cubic feet, a fraction of the former deliveries through Ukraine until the end of 2024.

This indicates that Russia is exploring alternative supply routes, which may impact future negotiations with Ukraine regarding gas transit.