Russia has ended its decades-long dominance over Europe’s energy markets by halting gas supplies to several European countries through Ukraine. The move marks the end of a five-year transit agreement between Russia and Ukraine, with neither side willing to strike a new deal amid the ongoing war.
The halt in gas exports occurred on New Year’s Day, bringing an end to Ukraine’s reliance on Russian pipelines for energy imports. The EU is now facing a shortage of natural gas, with Slovakia, Austria, and Moldova among the countries most at risk from the stoppage.
Ukraine’s Energy Minister, Herman Galushchenko, described the move as a “historic event,” saying Russia would lose markets and suffer financial losses. European lawmakers have welcomed the decision, citing steps taken by EU importers to prepare for the cut in supply and mild winter weather conditions.
The halt in gas supplies is expected to impact Europe’s energy security, particularly in countries that were heavily reliant on Russian gas imports. The front-month gas price at the Dutch TTF hub rose 1.2% to 49.49 euros ($50.78) per megawatt-hour, according to New York’s Intercontinental Exchange.
While Russia can still send gas via alternative pipelines, the halt in supplies is likely to have significant economic implications for both Russia and the EU. The European Commission has been working with impacted countries to prepare for the scenario, but the decision marks a significant shift in Europe’s energy landscape.
Source: https://www.cnbc.com/2025/01/02/ukraine-stopped-russian-gas-reaching-europe-heres-whos-most-at-risk.html