CONCERNS are rising across central and eastern Europe as the recent halt in Russian gas transit via Ukraine threatens to trigger an energy crisis.
In Slovakia’s capital, Bratislava, the effects are already being felt by many residents like cameraman Peter Lahky, who expressed worries over the economic impact of soaring energy prices.
Lahky, like others, fears that the decision by Ukraine to stop the flow of Russian gas to Europe will further strain household budgets, with Slovakia’s energy regulator predicting gas price hikes of up to 34 per cent in 2025.
For Lahky’s family, this means an additional 300 euros in energy costs for the year, a sum that could stretch their finances further, especially as the Slovak government has yet to confirm whether it will continue offering energy assistance.
“It’s not a small amount, so I’ll be more careful with my wallet,” Lahky said, a sentiment shared by many across the region. This price increase in Slovakia reflects a broader anxiety among residents of central and eastern Europe, where Russian gas has long been a mainstay.
The disruption in gas transit follows Ukraine’s decision not to renew its 2019 agreement with Russia’s Gazprom, which expired on December 31, 2024.
This decision effectively cut off around 15 billion cubic metres of gas that were transported through Ukraine to Europe in 2023, accounting for 5 per cent of Europe’s total gas consumption.
As a result, the TurkStream pipeline under the Black Sea is now the only remaining conduit for Russian gas to reach Europe.
The halt is especially detrimental to Moldova, a country that imported around 2 billion cubic metres of gas annually from Russia via Ukraine. With no immediate alternatives, Moldova faces both skyrocketing gas prices and the looming threat of an energy shortage.
Moldova’s Transnistria region has already seen heating and hot water services suspended, with companies like Tirasteploenergo stating that it could take up to two weeks to restore services to households and institutions.
The Moldovan government has responded by imposing a 60-day state of emergency, restricting electricity consumption by 30 per cent, and reducing street lighting. Emergency gas assistance from Romania and Bulgaria has been arranged to help mitigate the crisis.
Despite these challenges, Moldovan experts like Tatiana Savva have expressed concerns that the energy crisis could trigger a wider economic downturn. Savva warned that continued high energy prices could discourage investment and lead to stagnation in key sectors.
The disruption may also reduce Moldova’s competitiveness in the market, further complicating an already difficult economic environment.
In contrast, Austria appears to be more prepared for the energy crisis. The country has built up substantial gas reserves and, unlike Moldova, is less reliant on Russian gas.
Leo Lehr, Deputy Head of Austria’s energy regulator, E-Control, reassured the public that, while gas prices may fluctuate in the short term, Austria is well-equipped to handle the transition to alternative suppliers.
The government has assured its people that gas prices will not experience the same sharp rises as in 2022, though volatility may remain in the first few months of 2025.
