European Consumers Face Higher Gas Prices Amid Ukraine-Russia Transit Deal Uncertainty

European consumers are at risk of higher gas prices if Ukraine does not agree to extend a gas transit deal with Russia expiring on Dec. 31. Without the deal's renewal, Russia might resort to alternative routes, increasing costs for European buyers. Despite ongoing conflicts, talks involving the EU and Azerbaijan are ongoing.

European consumers face the prospect of higher gas prices if Ukraine fails to extend a gas transit agreement with Russia, which is set to expire on Dec. 31, the Kremlin warned on Wednesday.

Kremlin spokesman Dmitry Peskov indicated alternative routes, including a planned Turkish hub, but noted that Europe's gas costs would rise without the Ukrainian deal. Peskov highlighted potential damage to European interests if the agreement is not renewed amid existing military tensions.

The majority of Russian gas recipients via Ukraine are preparing for transit interruptions, with Gazprom exploring limited capacity alternatives. The European Union, alongside Ukraine, has requested Azerbaijan's assistance in negotiations with Russia.

(With inputs from agencies.)