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Gazprom reduces gas flow to E.U. through Ukraine, full transit to stop on New Year’s Day
Manage episode 458382144 series 3381925
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Russia’s state-owned energy company Gazprom announced on December 31 that it had begun reducing gas supplies to Europe through Ukraine, Reuters reported, citing a company statement.
The announcement comes just a day before the current gas transit agreement between Russia and Ukraine is set to expire. Without a last-minute deal, gas deliveries via Ukraine will cease entirely on January 1.
The Ukrainian authorities have previously warned that they would halt the transit of Russian gas and oil to Europe starting January 1, 2025, citing Russia’s ongoing war against Ukraine. Kyiv has refused to negotiate a new deal, and Russian President Vladimir Putin said on December 26 that there was no time left this year to finalize an agreement.
Key recipients of Russian gas, such as Slovakia and Austria, have secured alternative supplies, but the halt in transit is expected to deal a significant blow to Moldova.
Since the start of Russia’s full-scale invasion of Ukraine, E.U. countries have worked to reduce their reliance on Russian gas, shifting instead to suppliers from the United States, Norway, and Qatar. Analysts predict that the cessation of gas transit through Ukraine will have minimal impact on the broader market.
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