Ukraine ends transit of Russian gas to EU
Published On Dec 31, 2024, 3:40 PM
The recent cessation of Russian gas supplies to EU states through Ukraine marks a significant shift in Europe's energy landscape following the expiration of a five-year deal. Despite tensions arising particularly with Slovakia, which relied on Russian gas transit, the European Commission believes the EU's gas system can manage the transition due to diversified energy sources and strategic planning. The move signals an end to cheaper Russian gas, with the EU now obtaining less than 10% of its gas from Russia compared to 40% in 2021. Countries like Slovakia and Austria still depend on Russian gas, leading to geopolitical tensions and energy supply concerns, especially for Moldova and Ukraine.
Stock Forecasts
NEE
Positive
As Europe transitions away from Russian gas, companies involved in LNG, renewable energy or alternative energy sources may see increased demand and support. Given the geopolitical tensions, companies that can provide stable energy solutions to Eastern Europe and those focusing on energy independence stand to benefit. Stocks related to LNG and renewable energies such as NextEra Energy (NEE) could be positively impacted as Europe seeks to secure diverse energy supplies.
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