The Ukraine is responsible for rising gas prices in the EU. By December 31, the country will let the transit agreement with Russia expire. Russian President Putin also said on Thursday that it would be impossible to set up a new agreement even if Ukraine were to change its mind, before the expiration of the contract on the coming Tuesday.
As a result, the gas price rose by 3 percent over the Christmas holidays, with a megawatt-hour being traded at 48.02 euros. This is not far from the annual high of 49.55 euros.
The Ukraine argues that Russia uses the earnings from the gas business to finance the war, so Kiev will forgo the transit fees to weaken Russia’s ability to finance the war.
However, the damage to the EU is greater. The EU must finance Ukraine, which, in its own strength, cannot maintain its statehood. On the other hand, the Ukraine is responsible for rising energy prices in the EU and thus drives deindustrialization forward.
Meanwhile, Russia is building and orienting its infrastructure eastward. A further pipeline to China is being planned, which will run through Kazakhstan and supply not only China but also Kazakhstan with gas. The orientation towards the West has proven to be unstable and disadvantageous for Russia.