European natural gas prices surged after Russian President Vladimir Putin cast significant doubt on the likelihood of maintaining gas flows to Europe via Ukraine beyond 2024. Benchmark Dutch front-month futures, Europe’s primary gas price gauge, climbed as much as 5% on Friday, marking the largest increase in a week, before settling at €46.78 per megawatt-hour in early Amsterdam trading.
At the heart of the uncertainty is the impending expiration of the current transit agreement between Russia and Ukraine at the end of 2024. On Thursday, Putin stated it would be “impossible” to arrange a new transit contract by year’s end, citing unresolved logistical and legal hurdles.
Central European countries that still rely on Russian gas—including Hungary and Slovakia—have floated proposals for alternative arrangements to keep the fuel flowing across Ukraine. Suggestions include transferring control of the gas transit to intermediaries such as Turkey or Azerbaijan. However, ...
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