Chicago January 2, 2025
A major energy crisis is looming in Eastern Europe after Ukraine refused to renew a gas transit deal with Russia. The move has halted the flow of Russian gas to several European countries, including Austria, Slovakia, and Moldova.
Ukraine’s decision aims to deprive Russia of revenue that could be used to fund its war efforts. However, the move is expected to have severe consequences for Eastern European countries that rely heavily on Russian gas for heating and power.
Slovakia’s Prime Minister Robert Fico warned that the halt in gas supply would cost his country hundreds of millions of dollars and lead to higher gas prices across Europe. Moldova has already declared a state of emergency over the impending gas shortage, with its president warning of a “harsh” winter without Russian gas.
The European Commission has assured that the bloc has prepared for the cut-off and has alternative routes to supply gas to affected countries. Europe has been working to reduce its reliance on Russian gas, importing liquefied natural gas from Qatar and the US, and piped gas from Norway.
The crisis has already started to bite, with Transnistria, a breakaway Moldovan region, cutting off heating and hot water supplies to households. The situation is expected to worsen in the coming days, with temperatures plummeting across Eastern Europe.
