End of Russian Gas Transit via Ukraine

Russia is nearing the end of its gas transit to Europe via Ukraine, as supplies will halt on January 1 due to the expiration of a five-year deal that Kyiv refuses to renew amid ongoing conflict. This marks a significant decline in Russia's influence in the European gas market, which has decreased from a peak of 35% to a mere 8% of previous flows since the 2022 invasion of Ukraine. The current gas shipments have driven prices to historic highs, contributing to inflation across Europe, but the end of the deal is not expected to lead to another price surge due to the reduced volumes. Meanwhile, Moldova's Transnistria region has cut off gas supplies to several state institutions, coinciding with Gazprom's announcement of suspending gas exports to Moldova due to alleged unpaid debts. Moldova's Prime Minister condemned this decision and is exploring alternative gas routes through the Turkstream pipeline. Both Moldova and Transnistria have declared a state of emergency to manage electricity consumption amidst the impending gas supply issues.