Austria to import gas from Germany, Italy after halting of Russian gas supplies

Austria says it plans to import natural gas from Germany and Italy to mitigate the impact of the halting of Russian gas through Ukraine, but rising energy prices remain a concern.

Russian energy giant Gazprom said Wednesday that it had stopped gas supplies transiting through Ukraine due to the expiration of key agreements and the lack of renewal by the Ukrainian side.

Gazprom said Ukraine had repeatedly and unequivocally refused to extend these agreements, leaving the Russian company without the technical and legal means to continue the gas transit through Ukraine.

Austria is one of the European countries directly affected by the end of the supply, and while the Austrian government has sought to give assurances that gas shortages will be avoided through additional imports from Germany and Italy, many believe that higher gas prices are inevitable.

The Austrian Gas Grid Management AG (AGGM) confirmed on Wednesday that gas deliveries through the affected pipeline network have ceased, but stressed that Austria's energy sector had been prepared, and that domestic gas supplies will remain secure.

However, experts from the Energie-Control Austria (E-Control), the Austrian regulatory authority for the electricity and gas markets, forecast a short-term rise of three to ten euros per megawatt-hour (MWh) for natural gas.

Austrian newspaper Wiener Zeitung (WZ) has also reported that while gas prices are unlikely to soar as they did when the Russia-Ukraine crisis erupted in 2022, even a 10 percent increase would represent a significant financial burden for households and businesses, which could further pressure inflation.

The supplies of Russian gas through Ukrainian territory stopped on January 1 at 08:00 Moscow time, Gazprom said Wednesday in a statement.

Ukraine's Ministry of Energy reported that the transit of Russian natural gas through its gas transmission system was stopped at 07:00 Kyiv time Wednesday. The decision was made in the interest of national security, the ministry said, noting that Ukraine had informed its international partners about the move in the prescribed manner.

Austria to import gas from Germany, Italy after halting of Russian gas supplies

Austria to import gas from Germany, Italy after halting of Russian gas supplies

Austria to import gas from Germany, Italy after halting of Russian gas supplies

Austria to import gas from Germany, Italy after halting of Russian gas supplies

The European Central Bank (ECB) announced on Thursday that it would slash key interest rates by 25 basis points in a bid to wind down the restrictive monetary policy.

Effective from March 12, the interest rates on the deposit facility, the main refinancing operations and the marginal lending facility will be decreased to 2.50 percent, 2.65 percent and 2.90 percent respectively, said the central bank in a statement.

The disinflation process is well on track, with headline inflation averaging 2.3 percent in 2025, 1.9 percent in 2026 and 2.0 percent in 2027, the ECB said.

The decision to keep on cutting rates came at a time when the economy in the eurozone is facing increasing uncertainties.

In its latest edition of the staff projections on Thursday, the ECB lowered its forecast for economic growth in the eurozone to 0.9 percent for 2025, 1.2 percent for 2026 and 1.3 percent for 2027.

This marks a downward revision from the ECB's forecast in December last year, which had projected 1.1 percent growth in 2025 and 1.4 percent in 2026, while the 2027 outlook remains unchanged.

The ECB attributed the weaker growth outlook for 2025 and 2026 to declining exports and sluggish investment, citing high trade policy uncertainty and broader economic instability as key factors.

ECB cuts interest rates by 25 basis points