Russia Cuts Off Gas Transit Through Ukraine
On New Year’s Day, Russia will cease gas exports to Europe via Ukrainian pipelines, ending a five-year transit agreement and marking a significant geopolitical shift. This halt, coupled with an impending cold snap, will severely test Europe’s gas reserves, already depleted faster than in previous winters. The price of gas is rising, and the situation could stress-test European markets, particularly as countries face reduced wind power and increased heating demand. While some countries, like Slovakia, pressure Ukraine to renegotiate, Ukraine refuses a deal benefiting Russia financially.
John Q. Hosedrinker