Europe

Ukraine signs deal on importing Azerbaijani gas via Transbalkan route for 1st time

'This is a small but strategically important step that paves the way for long-term cooperation,’ says CEO of Ukraine’s state-owned oil and gas company

Murat Temizer and Burc Eruygur  | 28.07.2025 - Update : 28.07.2025
Ukraine signs deal on importing Azerbaijani gas via Transbalkan route for 1st time

ANKARA

Ukraine on Monday signed a deal with Baku on importing Azerbaijani gas to the war-torn country via the Transbalkan route for the first time.

Naftogaz CEO Sergii Koretskyi wrote on Facebook that his company concluded the first gas purchase agreement with SOCAR Energy Ukraine, a subsidiary of Azerbaijan's state oil company SOCAR.

Koretskyi further said that a test delivery is being carried out to Ukraine via Bulgaria and Romania.

“This is a small but strategically important step that paves the way for long-term cooperation. It is also another example of diversifying supply sources and strengthening Ukraine’s energy security,” Koretskyi went on to say.

He added that they are moving “step by step” in order to make Ukraine “as prepared as possible” for the heating season.

Ukraine's Energy Ministry, in a corresponding statement, said the deal between the two state companies is the result of the ministry's efforts at various levels, particularly after the results of Energy Minister Svitlana Hrynchuk's visit to the Azerbaijani capital earlier this month.

"Although the current supply volumes are small, this is of strategic importance, as it opens up the prospect of long-term and mutually beneficial cooperation between our states.

"In addition, this is another clear example of successful diversification of energy supply sources, an extremely important factor for reliable preparation for the heating season and its stable passage,” Hrynchuk was quoted as saying.

“On July 24, 2025, a trial agreement for gas supply was signed between SOCAR Energy Ukraine and Naftogaz Group,” said a separate statement by SOCAR Energy Ukraine, noting that Azerbaijani gas will be transported to Ukraine for the first time in history.

The move aligns with Ukraine's broader strategy to diversify its gas supply sources and strengthen its energy security in the face of ongoing regional instability.

Ukraine has not purchased natural gas directly from Russia since 2015, following years of energy disputes and geopolitical tensions. Instead, it has relied on reverse flows and imports from European countries.

In early 2025, Naftogaz reported purchasing around 1.5 billion cubic meters of gas, primarily from European suppliers.

Moreover, the five-year transit contract with Russia's Gazprom expired at the end of 2024 and has not been renewed, further solidifying Ukraine's departure from Russian gas dependency.


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