Russia Cuts Gas Flow to Europe as Deal Expires Amid Ongoing Conflict
On the final day of a crucial gas deal, Russia reduces its gas supply to Europe, signaling a significant shift in energy dynamics.
Moscow, Russia, Ukraine, Gas Supply, Gazprom, Energy, Moldova, Slovakia
Moscow: So, here’s the scoop. Gazprom, Russia’s big gas company, just announced it’s cutting back on gas shipments to Europe. This is happening on the last day of a deal that’s been in place for nearly three years, right in the middle of the ongoing war.
Today, they’re only sending about 37.2 million cubic meters of gas, down from 42.4 million yesterday. And guess what? Starting January 1, they’re planning to stop all shipments through Ukraine. That’s a pretty big deal!
This deal’s end means Russia is losing a lot of its grip on the European gas market. Ukraine isn’t interested in negotiating a new deal, thanks to the war. It’s a tough situation for Moldova, which used to be part of the Soviet Union and will feel the pinch the most.
Slovakia is also going to be hit hard. On the flip side, Hungary will still get Russian gas through a different route, the TurkStream pipeline, but they were hoping to keep the Ukrainian route too.
Ukraine is giving up around $800 million a year in transit fees, while Gazprom is looking at a loss of nearly $5 billion in gas sales. That’s a huge hit for both sides!
It’s wild to think that Russia spent decades building its presence in the European gas market, but now, because of the war, they’re losing ground to countries like Norway, the U.S., and Qatar. Gazprom even reported a $7 billion loss this year, which is the first time they’ve seen red since 1999.
So, yeah, things are changing fast in the energy world, and it’s going to be interesting to see how this all plays out.