European gas prices have jumped after Vladimir Putin abandoned a key pipeline transporting the fuel through Ukraine.

The benchmark gas price for the Continent rose by more than 2pc to around €47 (£39) per megawatt hour on Friday, the highest level seen for three weeks.

It followed remarks by Mr Putin that there was no longer enough time to strike a new contract for moving gas through Ukraine before the year’s end, when a current agreement expires.

In a televised briefing on Thursday, the Russian president said: “They announced that they would not renew the contract. There is no contract and it is impossible to conclude it in three to four days.”