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Russia lowers gas circulation via Ukraine to Europe on last day of expiring offer

Russia's Gazprom stated it will pump a decreased volume of gas to Europe via Ukraine on Tuesday, the last day before the expiry of a deal that had actually kept the gas streaming throughout almost 3 years of war.

Gazprom stated it would send out just 37.2 million cubic metres on Tuesday compared to 42.4 mcm on Monday. Flows are expected to fall to zero from the early hours of Jan. 1 after the expiry of the five-year transit agreement.

Its demise marks the practically total loss of Moscow's. once magnificent hold over the European gas market. Ukraine refused. to work out a new offer due to the fact that of the war.

The stopping of products via Ukraine will be a significant blow. to Moldova, a nation that was once part of the Soviet Union. Among European Union countries, Slovakia will be one of the most. affected.

Hungary will continue to get Russian gas from the. south, through the TurkStream pipeline on the bed of the Black Sea,. although it had actually been eager to keep the Ukrainian route as well.

Ukraine is giving up some $800 million a year in costs. from Russia, while Gazprom will lose near to $5 billion in gas. sales to Europe through Ukraine.

Russia and the Soviet Union spent half a century. developing a major share of the European gas market, which at. its peak stood at 35%, but the war in Ukraine has all but. destroyed that company for Gazprom, Russia's state-controlled. gas giant. It plunged to a bottom line of $7 billion in 2023, its. first annual loss because 1999

Moscow has actually lost to rivals such as Norway, the United. States and Qatar given that the 2022 invasion of Ukraine, which. prompted the EU to cut its dependence on Russian gas.

(source: Reuters)