Summary
- Ukraine’s state energy company Naftogaz signed its first gas import deal with Azerbaijan’s SOCAR via the Transbalkan corridor.
- This shipment is the first Azerbaijani gas delivery through the Bulgaria–Romania–Ukraine pipeline.
- The volume is small but strategically important, said Naftogaz CEO Serhii Koretskyi.
- The deal aims to reduce Ukraine’s reliance on Russian energy after missile strikes damaged infrastructure.
- It paves the way for more cooperation before the 2025–26 heating season.
- The move aligns with Europe’s push for alternative energy sources, despite concerns about Russian fossil fuel laundering.
- President Volodymyr Zelenskyi and Energy Minister Herman Halushchenko support this step toward Ukraine’s energy independence.
Ukraine’s state energy company Naftogaz has taken a pivotal step in diversifying its gas supply by signing its first-ever import deal with Azerbaijan’s SOCAR through the Transbalkan corridor. This initial shipment marks the first delivery of Azerbaijani gas via the Bulgaria–Romania–Ukraine pipeline route, aiming to reduce Ukraine’s reliance on Russian energy amid infrastructure challenges caused by recent missile strikes. While the current volume is small, Naftogaz CEO Serhii Koretskyi described it as strategically important, paving the way for enhanced cooperation and expanding options ahead of the 2025–26 heating season. The deal also reflects broader European efforts to secure alternative energy sources, although concerns remain over the laundering of Russian fossil fuels through regional intermediaries.
What Is the Nature and Scope of the Ukraine–Azerbaijan Gas Deal?
As reported by the staff of Daily Sabah, Ukraine’s state-owned Naftogaz struck its inaugural deal with Azerbaijan’s energy giant SOCAR to import natural gas through the Transbalkan route, covering the corridor from Bulgaria through Romania into Ukraine. The deal, publicized in simultaneous statements by both companies on July 28, 2025, involves an initial test shipment of a small yet strategically significant volume of gas.
According to Serhii Koretskyi, CEO of Naftogaz, as quoted by multiple sources including Aze.Media and OC Media,
“This is a small volume but strategically important step that paves the way for long-term cooperation.”
How Will the Gas Reach Ukraine, and Why Is This Route Important?
Reporting for Global Banking and Finance Review, staff detailed that the test batch is being delivered via the Transbalkan pipeline, which runs along the Bulgaria–Romania–Ukraine corridor. This route enables Ukraine to access non-Russian sources of natural gas and forms part of Kyiv's broader shift to diversify energy supplies after a series of Russian missile attacks left Ukrainian gas infrastructure severely damaged in 2025.
Why Has Ukraine Pursued This Deal Now?
Reuters’ Kyiv bureau emphasized that the war-induced destruction of key Ukrainian energy infrastructure has created an urgent need for new gas imports. Following Russian missile strikes that slashed domestic production, Ukraine has had to find new suppliers and routes to ensure it can weather the coming heating season.
The country’s previous imports from Slovakia and Hungary have proven insufficient given the scale of the anticipated shortfall—Kyiv estimates that it must import at least 4billion m³ of natural gas to supply the 2025–26 winter demand. The Transbalkan option, while previously hampered by costlier tariffs, has gained new appeal now that Ukraine’s regulator has approved a mechanism to bypass the highest transit fees.
What Do Ukrainian Officials and the Government Say About the Deal?
As noted in OC Media’s coverage, Naftogaz also thanked Ukrainian President Volodymyr Zelenskyi, the national government, and Energy Minister Herman Halushchenko for supporting the agreement, framing it as an important element in Ukraine’s energy independence strategy.
Halushchenko is quoted as saying in a May press release:
“Having phased out Russian energy carriers, Ukraine, like our partners in the EU, is actively working to find alternative gas supply routes. The use of the Trans-Balkan route is important in this context.”
What Is the Strategic Significance for Ukraine and Europe?
According to Reuters and sources cited by OC Media, the Transbalkan route could theoretically enable Ukraine to import as much as 1billion m³ of natural gas between June and October 2025, with the pipeline offering a daily capacity of 7,000m³ for Ukrainian imports. The current agreement, however, is for a far smaller trial volume, meant to test logistics and commercial arrangements.
How Does This Tie Into Europe’s Broader Energy Geopolitics?
Following the 2022 Memorandum of Understanding between the European Union and Azerbaijan, the EU has sought to double its gas purchases from Azerbaijan in an effort to offset declining supplies from Russia, as noted by Global Banking and Finance Review and OC Media.
European Commission President Ursula von der Leyen stated at the 2022 MoU signing that,
“Azerbaijan will compensate for cuts in supplies of Russian gas and contribute significantly to Europe’s security of supply.”
However, there remain concerns—highlighted by OC Media and advocacy group Global Witness—that Azerbaijan’s energy industry still helps Russian fossil fuels enter the European market despite sanctions and restrictions.
What Do Investigations Reveal About Energy Trading Practices?
OC Media cites investigations by the Organised Crime and Corruption Reporting Project (OCCRP) and Global Witness, which indicate that Azerbaijani tankers such as the Zangazur regularly call at Russian oil ports and supply the Turkish STAR refinery, whose products are sold in the EU. Global Witness claims that “the vast majority of STAR products imported by the EU this year have likely been made from Russian oil.”
Such findings have prompted the UK government to sanction Azerbaijani vessels as part of its crackdown on Russia’s so-called “shadow fleet.” The issue of fossil fuel laundering remains a point of contention as Ukraine and its European partners work to reshape the regional energy landscape.
What Do Azerbaijani Stakeholders Say?
No direct public statement from SOCAR’s senior leadership has been reported as of this publication; coverage in Aze.Media and other outlets relies on Naftogaz’s press releases and Ukrainian officials’ comments.
What Comes Next for Ukraine’s Energy Security?
Energy sector analysts and Ukrainian officials, quoted by Reuters and OC Media, view the current agreement as a pilot project for deeper commercial engagement with Azerbaijan and for further use of the Transbalkan corridor for gas imports. If trials succeed, Ukraine could increase the volumes significantly ahead of winter, leveraging both new supply routes and long-term cooperation with Azerbaijan.