Benchmark European natural gas futures jumped as much as 5% in early trading Friday after Russia's President Putin said it would be impossible to reach agreement on any new transit contract for the flow of natural gas through Ukraine to Europe before year’s end.

President Vladimir Putin said on Thursday there was no time left this year to sign a new Ukrainian gas transit deal, and laid the blame firmly on Ukraine for refusing to extend the agreement that brings gas to Slovakia,

Slovak Prime Minister Robert Fico announced on Dec. 27 that his government will evaluate potential reciprocal measures against Ukraine, including halting electricity supplies, if Ukraine stops the transit of Russian gas to Slovakia after January 1.