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EU records no drastic gas price hikes following cessation of transit through Ukraine

Photo: Classen/ullstein bild via Getty Images
Photo: Classen/ullstein bild via Getty Images
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Russia’s termination of gas supplies to Europe through Ukraine have seen no significant price increases or market shocks in natural gas, the European Commission (EC) has reported. 

EC spokesperson Anna-Kaisa Itkonen said on Friday that 10 days after the deal’s termination, the EC had seen no market disturbances as member states were well prepared.

She added that the Commission had coordinated with EU countries, conducted analyses and considered a range of scenarios. She also described the cessation of transit through Ukraine as “historic” as Russian gas had been supplied to Europe via that route virtually since the collapse of the Soviet Union.

But despite the lack of immediate market disruptions, the cessation of gas transit through Ukraine is expected to have long-term economic consequences, particularly for countries like Slovakia, which has been heavily reliant on Russian gas.

Slovak Prime Minister Robert Fico met with EU Energy Commissioner Dan Jørgensen in Brussels on Thursday to discuss the ramifications of the termination.
Fico warned that the halt in gas transit would cost EU member states between €40–50 billion, with an additional €60–70 billion in annual costs due to rising gas prices.

Slovakia was particularly dependent on Russian gas supplies and Kyiv’s decision to end the transit agreement has strained its relations with Bratislava.

In response to the termination of the agreement, the European Union has prioritized energy diversification and infrastructure development to reduce reliance on Russian gas.

Member states have ramped up efforts to secure alternative energy sources, including liquefied natural gas (LNG) shipments and increased reliance on renewable energy.

The European Commission has also been coordinating with member states to ensure that energy supplies remain stable and that citizens are shielded from significant price spikes.
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