The gas transit contract between Russia and Ukraine expires at the end of 2019. Negotiations on a new one, involving the EU, started back in January but proved unsuccessful in two rounds and were postponed to September because of Verkhovna Rada elections and the formation of a new government. However, this did not prevent Senior Executive Director of Naftogaz Ukraine Yuriy Vitrenko from stating that the Russian side was intentionally impeding the negotiations: "Moscow seeks to wait for the negotiators who will give up the interests of Kiev because the Russian authorities have no interest in concluding a treaty with civilized and fair rules for all the parties... Ukraine needs to prepare for halting the transit of Russian gas through its territory starting in 2020. Kiev should claim compensation through international arbitration."

Statements of this kind are testimony to the negotiators' different interests, not entirely economic. The EU aims to ensure its own energy security, and not necessarily by means of Ukrainian transit. The Russian leadership has repeatedly expressed readiness to maintain gas transit via Ukraine but under economically rational terms and in the case of a fair settlement of disputes between Gazprom and Naftogaz. Statements by the government and Naftogaz leaders point to the fact that their priority is the pursuit of political interests, causing to set a course on confrontation and seek to get their hands on the "master cards" until a new contract on gas transit is in place. To this effect, they are trying to use an EU legislative framework relatively favorable for Ukraine as regards Nord Stream–2 and to throw in their lot with the United States to counter its construction and operation. The US is trying to solve both political and economic issues, particularly to create risks unacceptable for EU energy security and associated with the supply of Russian gas, and then replace the latter with its own LNG. Here they use Ukraine as a bargaining chip to achieve the desired goals.

During Naftogaz head Andrei Kobolev's May 1 visit, the parties discussed issues on America's support for Ukraine in gas negotiations with Russia, as well as joint countering the Nord Stream–2 gas pipeline construction. Moreover, as Andrei Kobolev said in follow-up of the negotiations, Kiev and Washington are close to entering into a contract on the supply of American LNG to Ukraine (it is one and a half times more expensive than Russian gas).

Later, on May 22, a US delegation headed by Energy Minister Rick Perry and comprising US Special Representative for Ukraine Kurt Volker and Senator Ron Johnson, visited the country. At a meeting with President of Ukraine Volodymyr Zelensky and head of Naftogaz Andrei Kobolev, the sides proceeded with discussing "cooperation in the energy sector", namely a project to create a path for importing LNG from Poland to Ukraine. As Rick Perry said, the winter will be painless for the Ukrainians if Naftogaz pumps 20 billion cubic meters of gas into underground gas storages, which requires two billion dollars, pointing to various gas purchase financing methods, and there are high chances that those will be engaged.

This shows that Washington intends to use Ukraine as a tool not only to force Russia out of the European gas market, but also as another channel for selling its LNG. For Ukraine, this new "pipeline geography" implies that its long-term role of a key Russian gas transit country to the EU is coming to an end, with the pace and direction of this process set not by Kiev anymore. Moreover, such a geographical restructuring requires the construction of LNG terminals and the adjustment of Ukraine's gas transportation system so that it could serve these new routes. But the latter means that the country will have to plunge even deeper into the debt pit, since the government of Ukraine has no money. Being eventually trapped in the throes of contradictions between the interests of Washington seeking to get the EU hooked on its gas, and those of Berlin and Russia, Kiev is preparing its own default, using transit as a tool of blackmailing European consumers and Russia.

Meanwhile, the Ukrainian gas transportation system (GTS) continues to deteriorate. The current financial circumstances forced JSC Ukrtransgaz, the operator of Ukraine's gas transportation system, appeal to the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) to revise the existing loan arrangements under the project to modernize the Ukrainian section of the Urengoy-Pomary-Uzhhorod gas pipeline due to the lack of funds for loan servicing. Its leadership has noted that the current contract for gas supplies to Europe via the territory of Ukraine expires in six months, and prospects for the resumption of fuel supplies from Russia to Ukrainian consumers remain vague. Also, this is the second time in a month that they complain about the situation's being on the verge of collapse due to the lack of gas - the need for fuel is 240 million cubic meters per month, while in storage there are only 152 million cubic meters available. According to the company, 12 public sales had already been held where the GTS tried to buy 880 million cubic meters of gas. But none of the suppliers sold their fuel due to the company's failure to repay its debts under previous contracts (4.1 billion hryvnia or 9.8 billion rubles). And, according to former Minister of Transport and Communications of Ukraine Yevhen Chervonenko, if Ukraine loses its gas transmission system in case of its failure or passes the pipe into the hands of private investor companies, the country will head for disaster. The events may follow the 'Yugoslav scenario', which may end in the collapse of the country, he stressed.