Gas prices in Europe rose for the fourth consecutive day on Tuesday as the Russian gas transit deal through Ukraine is set to expire in a week.
With the agreement ending and temperatures expected to drop, fossil fuel prices are increasing. On the Dutch futures market, gas for January delivery reached €46.4 per megawatt-hour, up 1.8%. Prices have risen 10% over the past four days.
The Russian gas transit deal via Ukraine concludes on 31 December. The chances of an extension are slim.
Ukrainian President Zelensky stated last week that Ukraine would refuse to transit Russian gas without assurances that the Kremlin wouldn’t profit financially during the war.
Europe has been attempting to reduce its dependency on Russia since the country invaded Ukraine. However, several nations, including the Czech Republic, Austria, and Italy, still receive Russian gas and will need to switch to more expensive liquefied natural gas (LNG).
