Abstract. For a long time Ukraine remained the main transit country of Russian natural gas to Europe. Using its monopoly position Kiev repeatedly violated contractual obligations which led to the disruption of supplies to European consumers. In order to avoid further problems, Gazprom made a strategic decision to build gas pipelines bypassing Ukraine, which was to be completed by the end of the previous Russian-Ukrainian transit treaty. Ukrainian GTS would become redundant in this case and Ukraine would lose an important source of income. However, under strong pressure from the United States and the European Union, the Russian holding company was forced to sign a new contract for gas transit through the territory of Ukraine.