Ukrainian President Volodymyr Zelensky has announced that Ukraine will not extend its contract for the transit of Russian gas through the country to Naftogaz, a Ukrainian energy company, which was set to expire on January 1. The agreement with Gazprom, Russia's state-owned gas giant, had been in place since 2009 and allowed for the transportation of Russian gas to Europe via Ukraine. This decision has raised concerns about potential disruptions to gas supplies and strained relations between Ukraine, Hungary, and the European Union.
https://www.fakti.bg/en/world/940405-hungary-threatens-to-block-ukraine-s-eu-accession-over-russian-gas-transitThe current energy crisis in Moldova has been exacerbated by Russia's decision to cut off gas supplies to Transnistria, a breakaway region of Moldova. This move is seen as an attempt by Moscow to strong-arm the pro-Western government in Chisinau and sway public opinion ahead of parliamentary elections this year. The crisis has led to rolling blackouts in Transnistria, with almost all industries shut down due to lack of gas supply. The Moldovan government has offered subsidies to help offset the costs for citizens, but energy prices are already rising rapidly. The situation is further complicated by Ukraine's limited ability to provide assistance, as its own energy infrastructure has been severely damaged by Russian attacks since 2022. Transnistria's residents have expressed support for reintegration with Moldova in a recent poll, but efforts to reintegrate the region are made more complex by various factors, including the presence of Russian troops and linguistic, economic, and political realities. To address the energy crisis, Moldova needs to increase connections and electricity transport from Romania, which will help ease the current crisis. However, this will not provide enough electricity to support all of Moldova if the plant in Transnistria goes offline. Later this year, the Vulcanesti-Chisinau power line is expected to be online, providing enough electricity via Romania to support all of Moldova, excluding the Transnistrian region. In addition to increasing energy connections, there is a need for impartial oversight across the energy sector to ensure that industries are free from corruption and real or perceived corruption. Furthermore, Moldova must commit to an aggressive timeline to unbundle the gas sector, including removing Russia's state-owned Gazprom from a controlling interest in Moldova's gas company Moldovagaz. The plan should be publicly disclosed, including costs and timelines for implementation, to ensure that energy is secure. This will not only help Moldovans plan for their costs and supply but also counter disinformation around energy supplies. The plan would also help Moldova's many partners and allies, including the United States and the European Union, understand a timeline for aid in this sector.
https://www.csis.org/analysis/energy-crisis-provides-opportunity-moldovaSerbian President Aleksandar Vucic expects the United States to impose sanctions on Serbia's oil company NIS by January 10 or 13 due to its majority stake held by Russian companies, including Gazprom Neft and Gazprom. The US Undersecretary for Economic Growth, Energy and the Environment Jose Fernandez confirmed that Washington would impose direct sanctions on NIS. Vucic stated that Serbia has the funds to buy NIS if it is sold, but emphasized that the question lies in what Russia will do with the money received from the sale. Despite being a candidate country for EU membership, Serbia remains dependent on Russian energy sources and has refused to impose sanctions on Moscow, citing sufficient oil reserves as a buffer against potential shortages.
https://www.fakti.bg/en/world/939412-aleksandar-vucic-we-will-soon-understand-the-us-sanctions-against-the-serbian-oil-industryEuropean and Asian equities experienced a less favourable start to the New Year due to uncertainty over US President Trump's policies and a more hawkish Federal Reserve outlook. The STOXX 600 index initially declined but later steadied, while US stock futures rose by around 1%. European oil & gas stocks were boosted by higher crude futures after Russian gas firm Gazprom halted exports via pipelines through Ukraine due to a transit agreement dispute. China's CSI 300 Index and Shanghai Composite Index fell sharply, logging their weakest New Year start since 2016, as factory data disappointed investors. President Xi Jinping announced more proactive policies to boost growth in 2025, but investors are closely monitoring the country's recovery amidst potential headwinds from Trump's tariffs on Chinese goods.
https://www.gulftoday.ae/business/2025/01/02/world-shares-start-2025-with-wobble-on-trump-trepidationAustria and Slovakia have been diversifying their natural gas supplies due to a dispute between Russia's Gazprom and Austria's OMV. Despite the halt in supplies to OMV, other customers continued to receive gas through Ukraine's pipelines. In response, Slovakia has signed deals with Azerbaijan to import natural gas and with Poland to bring in liquefied natural gas from the US. This shift is aimed at reducing dependence on Russian gas for electricity generation, industrial processes, and heating homes.
https://www.thehindu.com/news/international/ukraine-halts-transit-of-russian-gas-to-europe-after-a-prewar-deal-expired/article69049835.eceRussia's state-owned energy company Gazprom is facing a significant financial loss due to the ongoing conflict in Ukraine. The war has disrupted Russia's gas supply routes to Europe, including the Yamal-Europe pipeline through Belarus and the Nord Stream pipeline under the Baltic Sea, which was sabotaged in 2022. If gas transit through Ukraine ceases on January 1, Gazprom stands to lose an estimated $5 billion annually from this route, which previously accounted for a significant share of its European market presence.
https://www.ukrinform.net/rubric-economy/3943785-gazprom-reduces-gas-supplies-to-eu-via-ukraine.htmlRussia's state-owned energy company, Gazprom, has suspended gas exports to Europe through Ukraine, citing the expiration of a transit agreement on January 1, 2025. The halt in exports was announced by Gazprom and took effect at 8am Moscow time, affecting gas deliveries to European countries that rely on this route for their energy supply.
Russia's invasion of Ukraine has led to a significant decline in Moscow's share of gas exports to European countries, which have instead turned to suppliers such as the US, Qatar, and Norway. As a result, state-controlled Gazprom recorded a $7 billion loss in 2023, its first annual loss since 1999. This shift in gas supplies has had far-reaching economic consequences for Europe, contributing to a slowdown in economic growth, rising inflation, and exacerbating the cost of living crisis.
https://channelnewsasia.com/world/europes-russian-gas-era-comes-end-ukraine-transit-stops-4833281Hungary is expected to be minimally affected by the reduction in Russian gas supplies due to its use of an alternative route via Turkey and the Balkans, whereas other European countries are bracing for a potential shortage. The European Commission has been preparing for this scenario for over a year, while Ukraine has criticized countries that continue to purchase Russian oil and gas despite the ongoing invasion. Russia's energy revenues are crucial to its government finances, which is why it has shifted its exports towards Asia in response to Western sanctions. In another dispute, Gazprom announced it would halt gas supplies to Moldova on Wednesday due to a payment issue, prompting Chisinau to declare a state of emergency over possible power shortages.
https://www.brecorder.com/news/40340559/moscow-kyiv-end-russian-gas-transit-to-europe-via-ukraine