Putin halts Russian gas supplies to Europe on Jan 1st, 2025

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On January 1, 2025, Russian President Vladimir Putin delivered a bombshell: Europe would be cut off from Russian natural gas supplies. The announcement, aimed squarely at escalating the energy crisis that began with Russia’s 2022 invasion of Ukraine, left Europe bracing for impact. The move effectively shuts down the gas flowing through Ukraine, a lifeline for several European countries.

Russia once dominated Europe’s energy market, supplying 35% of its natural gas before the Ukraine conflict. Over the past two years, the EU has scrambled to reduce dependence on Russian energy, striking deals with Norway, the U.S., and Qatar. Yet, some nations, deeply tied to Russian supplies, face looming crises. Slovakia, Hungary, and Austria are in the spotlight, as the Soviet-era Urengoy-Pomary-Uzhgorod pipeline, a major conduit for Russian gas, falls silent.

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The numbers tell a stark story. Slovakia alone relies on Russia for two-thirds of its gas needs, importing roughly 3 billion cubic meters annually. While Europe has ramped up storage and diversified supply lines, the sudden halt brings flashbacks to 2022, when gas prices surged, sending shockwaves through industries and households alike.

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To some extent, the blow is softened by dwindling volumes of gas flowing through Ukraine in recent years—just 15 billion cubic meters in 2023, a shadow of the 2018-2019 peak. But these figures provide little comfort to countries still reliant on Russia’s gas.

Energy resilience is about to face its toughest test. The pipeline shutdown could tighten supplies, drive up prices, and strain Europe’s energy security strategy. Whether storage reserves and alternative supplies can shield Europe from significant shortages remains to be seen.

Sources:

https://timesofindia.indiatimes.com/world/rest-of-world/explainer-what-happens-when-russian-gas-to-europe-via-ukraine-stops/articleshow/116598566.cms

https://www.politico.eu/article/no-new-russian-gas-deal-for-eu-vladimir-putin-viktor-orban-robert-fico-plead-for-renewal/

https://oilprice.com/Latest-Energy-News/World-News/Gazprom-Plans-for-End-of-Russian-Gas-Flows-to-Europe-via-Ukraine.html