Gas prices in Europe surge as Putin casts doubt on new transit agreement – Bloomberg

European natural gas prices have spiked after Putin expressed doubts about reaching a new agreement to maintain gas supplies to Europe via Ukraine.

Source: Bloomberg

Details: On Friday, 27 December, benchmark futures rose by 5%, marking the largest weekly increase in gas prices. Putin stated on 26 December that it would be impossible to finalise a new transit agreement before the current one expires at the end of the year.

Central European countries, which continue to purchase Russian gas, have proposed alternative solutions to maintain fuel supplies through Ukraine. However, President Volodymyr Zelenskyy has rejected any arrangements that funnel money into Russia's coffers while the war continues.

European traders are closely monitoring regional gas storage levels, which are currently below 75%.

Background: European natural gas prices have been rising for four consecutive days due to ongoing concerns about supply, as the expiration of the key transit agreement between Russia and Ukraine is only a week away.

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