BRATISLAVA: The halting of Russian gas transit through Ukraine has sparked concerns across eastern and central Europe, where nations heavily reliant on Russian gas supplies now face the prospect of seeking more expensive alternatives. This decision, which came after Ukraine opted not to renew a transit agreement with Russia, is expected to lead to increased energy prices and potential shortages in the region.
According to Namibia Press Agency, Slovakian residents, such as cameraman Peter Lahky, are already feeling the pressure of the anticipated energy crisis. Slovakia’s Regulatory Authority for Network Industries has projected that household gas prices could rise between 15 to 34 percent by 2025 without state assistance. Lahky expressed worry about the potential financial strain, noting that his family might have to pay approximately 300 euros more for gas compared to the previous year.
The decision to halt the transit follows Ukraine’s choice not to extend a 2019 agreement between its Naftogaz and Russia’s Gazprom, which expired at the end of 2024. In 2023, around 15 billion cubic meters of Russian gas were transported through Ukraine to Europe, fulfilling about 5 percent of European gas needs. With the cessation of this route, the TurkStream pipeline under the Black Sea remains the only conduit for Russian gas to Europe.
The impact of the transit halt is acutely felt in Moldova, which relied on Ukraine for about 2 billion cubic meters of Russian gas annually. The energy company Tirasteploenergo in Moldova’s Transnistria region has already suspended heating and hot water services, citing a “temporary cessation of gas supplies.” The Moldovan government has declared a 60-day state of emergency and is implementing measures to reduce electricity consumption by 30 percent, including limiting street lighting and adjusting operational hours in high-energy areas. Moldova is also seeking to increase electricity imports from Romania and has signed an agreement with Bulgaria for emergency gas support.
Despite these challenges, Austria presents a more optimistic outlook. The Austrian government has assured its citizens of ample gas reserves and preparations for alternative suppliers. Leo Lehr of Austria’s energy regulator, E-Control, has indicated that significant gas price hikes are unlikely, although some volatility may occur early in the year.
Tatiana Savva, a finance and public policy expert, has noted that the high energy costs could discourage investments in Moldova and lead to economic stagnation if a swift resolution to the crisis is not found. The situation underscores the broader regional challenge of transitioning away from Russian energy dependence amid geopolitical tensions.