The End of an Era: Gazprom's Declining Grip on European Gas

Gazprom will reduce gas flow to Europe via Ukraine on the final day before a crucial transit deal expires, cutting Russian influence on the European gas market. This significant change affects Moldova and Slovakia most, with financial losses for both Ukraine and Gazprom.

Russia's Gazprom announced a reduction in gas flow to Europe through Ukraine, marking the end of a transit deal that persisted throughout nearly three years of conflict. Tuesday's shipment will be reduced to 37.2 million cubic metres compared to 42.4 mcm on Monday.

With the expiration of the agreement at the start of the new year, gas flow through Ukraine is expected to cease entirely, signalling the near-total decline of Moscow's dominance over the European gas market. Ukraine's refusal to negotiate a new deal due to ongoing war conflicts contributes to this shift.

The stoppage will significantly affect countries formerly within Soviet influence such as Moldova, with Slovakia and Hungary also impacted. Gazprom forfeits fees of $5 billion in European gas sales through Ukraine, while Ukraine loses $800 million annually. The EU has turned to alternative gas suppliers like Norway and Qatar following reduced reliance on Russian energy since 2022.

(With inputs from agencies.)