The Kremlin has warned that European consumers may face higher gas prices if Ukraine does not extend its gas transit agreement with Russia by December 31. Dmitry Peskov, spokesman for President Putin, stated that the expiration of the contract would harm European interests and lead to increased costs, potentially destabilizing the competitiveness of European industries. Despite these warnings, Ukrainian officials, including President Zelensky, have reiterated their decision not to renew the agreement but expressed a willingness to discuss requests from European companies. The current contract facilitates the transit of gas from Russia to Europe through Ukraine, with major customers including Hungary, Slovakia, and Austria. As a contingency, Gazprom is exploring alternative routes, while the European Union is seeking Azerbaijan's help in negotiations with Russia. The situation remains uncertain, with implications for energy security in Europe.