European Commission Says Bloc Can Cope with Halt of Russian Gas Flow

FILE PHOTO: Valves and pipes are seen at a gas compressor station in the village of Boyarka, outside Kyiv, April 22, 2015. REUTERS/Gleb Garanich/File Photo/File Photo
FILE PHOTO: Valves and pipes are seen at a gas compressor station in the village of Boyarka, outside Kyiv, April 22, 2015. REUTERS/Gleb Garanich/File Photo/File Photo
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European Commission Says Bloc Can Cope with Halt of Russian Gas Flow

FILE PHOTO: Valves and pipes are seen at a gas compressor station in the village of Boyarka, outside Kyiv, April 22, 2015. REUTERS/Gleb Garanich/File Photo/File Photo
FILE PHOTO: Valves and pipes are seen at a gas compressor station in the village of Boyarka, outside Kyiv, April 22, 2015. REUTERS/Gleb Garanich/File Photo/File Photo

The European Commission played down the impact of a halt of Russian gas exports to Europe via Ukraine on Wednesday, saying the stop on Jan. 1 had been expected and that the bloc was prepared for it.
"The European gas infrastructure is flexible enough to provide gas of non-Russian origin to CEE (central and eastern Europe) via alternative routes," a spokesperson for the European Commission said.
"It has been reinforced with significant new LNG import capacities since 2022."

Russian natural gas exports via Soviet-era pipelines running through Ukraine to Europe were halted in the early hours of New Year's Day as a transit deal expired and warring Moscow and Kyiv have failed to reach an agreement to continue the flows.
The shutdown of Russia's oldest gas route to Europe ends a decade of fraught relations sparked by Russia's seizure of Crimea in 2014. Ukraine stopped buying Russian gas the following year.
"We stopped the transit of Russian gas. This is a historic event. Russia is losing its markets, it will suffer financial losses. Europe has already made the decision to abandon Russian gas," Ukraine's Energy Minister German Galushchenko said in a statement.
The stoppage of gas flows was expected amid the war, which started in February 2022. Ukraine has been adamant it would not extend the deal amid the military conflict.



Gold Gains as Dollar Slips on Trump Tariff Uncertainty

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Gains as Dollar Slips on Trump Tariff Uncertainty

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold prices rose on Tuesday as the US dollar eased due to uncertainty around President-elect Donald Trump's tariff plans, with further support coming from top consumer China's central bank adding to its gold reserves for a second straight month.

Spot gold was up 0.5% at $2,648.75 per ounce, as of 1218 GMT. US gold futures also rose 0.5% to $2,660.20.

"The main factor is the softening of the US dollar over the last two sessions, which has provided some relief for the precious metal," said Ricardo Evangelista, senior analyst at ActivTrades.

The dollar index eased towards a one-week low versus major peers as traders considered whether President-elect Donald Trump's tariffs would be less aggressive than promised following a report in the Washington Post, Reuters reported.

Trump however denied the report, deepening uncertainty about future US trade policies.

A stronger dollar makes bullion more expensive for other currency holders.

Traders are setting their sights on Friday's US jobs report for Fed policy clues, along with job openings data due later in the day, ADP employment and the minutes from the Fed's December meeting on Wednesday.

Fed Governor Lisa Cook on Monday said that the Fed can be cautious about any further rate cuts given a solid economy and inflation proving stickier than previously expected.

Bullion is considered a hedge against inflation, but high rates reduce the non-yielding asset's appeal.

Meanwhile, China's gold reserves stood at 73.29 million fine troy ounces at the end of December as the central bank kept buying gold for a second straight month, official data showed.

"By re-entering the market in December, Beijing signaled that its gold acquisition program remains active—a development likely to lend continued support to the precious metal's price," Evangelista added.

Gold prices gained about 27% in 2024, mainly boosted by robust central bank purchases and Fed rate cuts.

Spot silver gained 0.8% to $30.19 per ounce, platinum added 1.2% to $944.39 and palladium rose 0.9% to $928.38.