Europe Braces for Tense Countdown to Ukraine Gas Flow Halt
- Last-minute talks have led to volatility and no solution yet
- Most banks expect Russian flows via Ukraine won’t be prolonged
This article is for subscribers only.
With less than two weeks left until a transit deal between Russia and Ukraine expires, Europe’s natural gas market is getting ready for turbulent trading after the New Year break. Instead of partying on Dec. 31, traders will be refreshing their screens to check headlines and grid data for clues on a last-minute solution — if there is one.
Major banks and the European Commission are preparing for pipeline flows across Ukraine to come to a stop on Jan. 1, forcing the continent to turn to other sources to replace them and likely driving up prices. Russia delivers about 15% of Europe’s gas imports, and while only a third of that goes through Ukraine, traders remain on high alert.