Europe's Energy Crisis Deepens as Ukraine Cuts Russian Gas Supplies

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The energy crisis in Europe has intensified following Ukraine's decision to stop Russian gas supplies through its territory. As the contract with Gazprom expired on January 1, 2025, the historic pipeline used for transporting gas from east to west has been completely shut down. This marks a significant development in the ongoing energy challenges exacerbated by the war in Ukraine.

Moldova is experiencing the immediate impacts of the gas cutoff, facing severe winter conditions without heating or hot water. The government had anticipated this situation, but alternative solutions have been lacking, particularly in the pro-Russian region of Transnistria. In response to the crisis, the director of the International Energy Agency has urged European nations to aid Moldova in maintaining essential energy supplies.

Slovakia and Hungary, which heavily relied on the Ukrainian pipeline, are also seeking alternative gas sources. While Slovakia must contend with additional costs—approximately €180 million in 2025—for securing gas, Hungary plans to increase imports from Russia through Turkey.

Despite these challenges, experts indicate that there will not be an immediate gas shortage for the European Union. However, the cessation of supplies may strain markets and contribute to rising energy prices. The International Energy Agency forecasts a tightening of global gas markets in 2025.

Ukraine's refusal to renegotiate its gas terms has led to potential retaliatory measures from neighboring countries, further highlighting divisions within the EU regarding energy security and foreign policy towards Russia. Meanwhile, the EU will likely increase imports of liquefied natural gas, including from the United States and Qatar, in response to the evolving energy landscape.

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