European Gas Prices Rise After Russia Halts Transit Through Ukraine
Gas prices in Europe have risen sharply after Ukraine stopped transit of Russian gas through its territory. The price rose by 4.3% to almost 51 euros per megawatt-hour on January 2.
Ukraine had warned that it would not extend the agreement when it expired at the end of 2024 because it did not want to finance Russia’s war in Ukraine. Experts say that tapping stored reserves will help meet gas demands this winter, but higher demand is expected for natural gas over the course of 2025.
Liquified natural gas (LNG) cannot fully replace Russian gas flows due to a lack of infrastructure and its higher price. Ukrainian President Volodymyr Zelensky said that stopping Russian gas transit was “one of Moscow’s biggest defeats.”
Russia Launched Drones Against Ukraine
On January 2, Russia launched 72 drones against Ukraine, including Iranian-designed Shahed drones. A civilian was killed in a drone attack on the town of Stepnohirsk.
Ukraine’s Air Force reported that Russian forces suffered over 1,370 casualties in the past day. Ukraine also destroyed 35,670 Russian FPV drones and 1,140 strike drones.
Scientists Killed in Drone Strike
A married couple who worked as scientists at a university in Kyiv were killed in a Russian drone strike on January 1. President Zelensky expressed condolences to their families and wished a swift recovery to all those injured.
European Commission Rejects Hungary’s Aid Package
The European Commission rejected an aid package for Hungary, citing the country’s failure to implement reforms to meet EU standards by the end of 2024.
Moldova Seeks Alternative Electricity Sources
Russia’s halt in gas supplies to Moldova resulted in a heating outage in the Russian-controlled region of Transnistria. Moldova is seeking alternative sources of electricity.
Ukraine and International Court of Justice
The International Court of Justice has recognized Ukraine as a state party to an international treaty. This means that Ukraine has all the rights and obligations assigned to state parties.
Russia’s Military Losses Continue to Rise
Ukraine’s Commander-in-Chief, Oleksandr Syrskyi, reported that Russia had lost over 38,000 troops and more than 1,000 pieces of equipment since the beginning of Ukraine’s incursion into Russia’s Kursk Oblast.