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Ukraine Halts Russian Gas Transit, Causing Prices to Surge to 50 Euros per MWh and Energy Shortages in Moldova

Jan 1, 2025, 06:35 PM

Ukraine has ceased the transit of Russian natural gas to Europe, marking the end of a five-year transit agreement that expired on January 1, 2025. The cessation has led to a sharp drop in gas flows, with supplies falling to zero as of early January 1. This move has caused European natural gas prices to rise above 50 euros per megawatt hour, driven by the termination of the transit route and increased winter demand. Moldova, particularly its breakaway region of Transnistria, is facing immediate energy shortages, with residents experiencing cuts in heating and hot water supply due to the heating outage. The European Union has stated it is prepared for this scenario, having developed alternative routes to mitigate the impact of the loss of Russian gas through Ukraine.