Gas prices rise as deal between Russia and Ukraine expires
Gas prices in Europe are rising as an agreement to transit Russian gas to Europe via Ukraine nears expiry. On the Dutch futures market, a megawatt hour of gas now costs more than 45 euros, an increase of over 2 per cent. Last week, gas prices had already risen by 7 percent.
The rise follows the imminent expiry of a gas transit contract between Russia and Ukraine, which expires at the end of December. It is unlikely to be extended.
Several countries in Europe, including the Czech Republic, Slovakia, Austria and Italy, will no longer receive pipeline gas from Russia. They will have to rely on more expensive liquefied natural gas (LNG), which will increase energy prices.
Meeting with Putin
On Sunday, Slovak prime minister Robert Fico travelled to Moscow to discuss the issue with Vladimir Putin. The pro-Russian Fico is the third Western leader to meet the Russian president since the start of the war in Ukraine.
The Slovak prime minister said Putin was willing to continue supplying his country with gas, but that Ukraine's refusal to extend the deal made it "practically impossible". Fico, who was re-elected prime minister in October last year, also said Putin had been "wrongly demonised" by the West.
"Security issue"
On Monday, Ukrainian president Volodymyr Zelensky called out the Slovak prime minister. He wrote on X that Fico "wants to help Putin make money to finance the war and weaken Europe".
"This is indeed a major security issue - both for Slovakia and for all of Europe," Zelensky continued. "Why is this leader so dependent on Moscow? What is he being paid, and what is he paying with?"
An employee turns a valve on a pipeline at the Bulgartransgaz gas compressor station in Ihtiman. PHOTO © Nikolay DOYCHINOV / AFP
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