Gas prices in Europe have shot up to $536 per 1,000 cubic meters during ICE trading, the highest since November 27, 2023, amid expectations of halted Russian gas transit through Ukraine starting January 1. Prices rose by over 4% since the day’s start.
February futures at the Dutch TTF hub exceeded $536 per 1,000 cubic meters (€50 per MWh). The current transit agreement, allowing the transport of 40 billion cubic meters annually through Ukraine, expires on January 1.
Russian President Vladimir Putin confirmed that no new agreement would be signed before the New Year, and Kiev announced plans to halt Russian gas transit at 8:00 a.m. Moscow time on January 1.
Ukraine stated, however, that it is open to resuming transit upon the European Commission’s request, provided it is non-Russian gas. Putin suggested contracts with third-party suppliers, including Turkish, Hungarian, Slovak, or Azerbaijani companies.
Meanwhile, gas transit bids from Russia through Ukraine for January 1 have dropped to zero, according to data from the Ukrainian Gas Transmission System Operator.
Supplies will end at 8:00 a.m. Moscow time (05:00 GMT) on January 1, according to a contractual document on gas transit. Ukrainian authorities have repeatedly stated they do not plan to extend the transit agreement.
