Europe’s End of Cheap Russian Gas: Economic Fallout and Geopolitical Shifts
Russia’s gas transit through Ukraine will cease on January 1st, 2024, marking the end of a long-standing energy relationship. This closure, coinciding with the expiration of a transit deal, has minimal expected market impact due to Europe’s diversification of gas sources following the Ukraine war. While the EU’s reduced reliance on Russian gas caused economic challenges, including inflation and a cost-of-living crisis, alternative suppliers have mitigated potential disruptions. The pipeline’s closure carries significant geopolitical weight, reflecting Russia’s diminished influence in the European energy market and Gazprom’s substantial financial losses.
John Q. Hosedrinker