European natural gas market reports and price indices

Gazprom Stops Gas Supplies to Europe via Ukraine as Transit Deal Ends; EU Gas Prices Surge

Jan 1, 2025, 05:30 AM

Russia's Gazprom halted natural gas supplies to Europe via Ukraine at 8:00 Moscow time on January 1, 2025, as the five-year transit agreement between the two countries expired without renewal. Ukraine's Energy Ministry cited national security interests and called the halt a 'historic event'. The cessation marks the end of over five decades of Russian gas flowing to Europe through Ukraine. European natural gas prices rose above €50 per megawatt-hour for the first time in over a year amid supply concerns. The European Commission stated it was prepared for the expected halt, anticipating limited impact due to alternative gas sources and infrastructure flexibility. Eastern European countries like Moldova and Slovakia expressed concerns over potential energy shortages, with Moldova declaring a state of emergency. In Transnistria, centralized heating and hot water were turned off due to the gas supply stoppage. Prior to the halt, Gazprom had reduced deliveries, supplying 37.2 million cubic meters on the last day.