Gazprom Stops Gas Deliveries to Austria: Europe's Energy Transition in Full Swing

Russia has informed Austria that it will stop gas deliveries starting Saturday, signaling the imminent end of Moscow's last significant gas flows to Europe. In the future, Russia will only deliver substantial gas shipments to Hungary and Slovakia, in contrast to the decades when 40 percent of the EU’s gas needs were supplied by Russia. Since 1968, Austria was the first Western European buyer of Russian gas. The decision follows a contractual dispute between Gazprom and Austria's OMV, on which both companies were asked to comment. European stock values fell on Friday due to disappointing corporate earnings, concerns over the impact of Donald Trump’s policies, and rising treasury yields. The Stoxx 600 Index dropped by 0.8 percent to a three-month low. U.S. stocks also declined, influenced by statements from Fed Chairman Jerome Powell, who indicated there was no rush for interest rate cuts. Trump’s appointment of anti-vaccine activist Robert F. Kennedy Jr. as the head of the U.S. Department of Health put pressure on European pharmaceutical stocks, including Novo Nordisk, Sanofi, and GSK. The FTSE 100 closed weaker following losses at AstraZeneca and GSK. The British economy grew less than expected in the third quarter, which is a disappointment for the Labour government. Reports suggest new tax plans from Rachel Reeves could strain economic growth and threaten 100,000 jobs. Xi Jinping criticized unilateral tendencies and advocated for economic globalization. He introduced measures aimed at attracting foreign investments to China, but international concerns over China’s economic policy are increasing. Global stock markets recorded a significant decline, as economic data and statements from U.S. Fed officials suggest slower interest rate cuts. European pharmaceutical stocks also came under pressure following Trump’s nomination of Robert F. Kennedy Jr. as Health Secretary, adding further challenges for the sector.