UEFA's decision to terminate their lucrative sponsorship deal with Russian energy giant Gazprom would cost the European football body a whopping $46 million a year, hurting them in a big way financially, the British tabloid The Mirror reported on Tuesday.
"UEFA has decided to end its partnership with Gazprom across all competitions," the sports organisation said in a statement on Monday. "The decision is effective immediately and covers all existing agreements including the UEFA Champions League, UEFA national team competitions and UEFA EURO 2024."
Gazprom has been UEFA's principal sponsor since 2012; alongside the US drink brand Coca Cola, it was one of the main partners of Euro 2020. Only last year, they had agreed to extend the deal until 2024.
Moreover, the Russian corporation was also one of the official sponsors of the Champions League, Europe's premier club tournament.
With UEFA tearing up the deal, the continental competition will have to find a new partner soon with the second leg of last 16 clashes starting from next week.
UEFA's termination of their contract made it a day of double blows for Gazprom as German football club Schalke followed suit, cancelling their partnership with the Russian company.
Schalke's deal with Gazprom was inked in 2007 and valued to be worth over $40 million per season.