European natural gas prices increased after Russian President Vladimir Putin expressed skepticism about reaching a new agreement to ensure the continued flow of gas to Europe via Ukraine.
Benchmark futures closed up 4.4%, following a 5% surge on Friday, marking the second consecutive week of gains.
On Thursday, Putin stated that arranging a new transit contract before the current agreement expires at the end of the year seems "impossible."
European countries that remain reliant on Russian gas have proposed alternative solutions to maintain gas flows through Ukraine. However, the Ukrainian president rejected any arrangements that would funnel funds to Russia’s treasury amid the ongoing war.
Meanwhile, Slovak Prime Minister Robert Fico threatened to halt backup electricity supplies to Ukraine if Kyiv ceases Russian gas transit to Europe.
The flow of Russian gas through Ukraine is expected to halt by the end of the year when the current agreement expires unless an alternative is reached.
Slovakia, one of the largest remaining buyers of Russian gas, has increased pressure on Ukraine to find a swift resolution.
It is worth noting that Russia has intensified missile and drone attacks on Ukraine's energy infrastructure since March, destroying half of the country’s electricity generation capacity and causing widespread blackouts.
As a result, Ukraine now heavily depends on electricity supplies from Slovakia.
