VIENNA (Reuters) - Austria's far-right Freedom Party (FPO), which won September's parliamentary election with 29% of the vote, is due to start coalition talks with the conservative People's Party (OVP) this week aimed at creating the country's first FPO-led government.

In the first trading day after Ukraine ceased the flow of Russian gas and oil, benchmark natural gas prices in Europe surged 4%.

Austria has insisted it is well prepared for the stoppage, but Slovakia has threatened to cut electricity supplies to neighboring Ukraine.

Vienna could be about to get its first far-right leader since World War II. Europe’s mainstream sees trouble brewing.

The Freedom Party and its leader, Herbert Kickl, have steadily built support by demonizing immigrants, while entering Austria’s political mainstream.

Since January 1, when the transit of Russian gas through Ukraine stopped, in Austria and Slovakia has sharply increased gas extraction from storage facilities, and Austria and the Czech Republic have resumed fuel imports through Germany.

Ukraine’s suspension of Russian gas transit through its territory is not a threat to EU energy security. However, the bloc’s member states should continue working towards their goal of becoming indepe

Austria’s Freedom Party, which is starting talks to lead the government, opposes sanctions on Russia and the EU’s support for Ukraine.

Austria should not face supply disruption as it has prepared for the switch from eastern supplies of natural gas to western alternatives after Ukraine's contract with Gazprom expires on Tuesday, Austria's energy regulator E-Control said.

U.S. President-elect Donald Trump takes office on January 20 having criticized continued U.S. military aid for Ukraine's fight against Russia. This may shift the onus on support for Kyiv to fall on other allies, particularly in Europe, where a changing political leadership since his election could complicate matters.

Austria's far-right Freedom Party (FPO), which won September's parliamentary election with 29% of the vote, is due to start coalition talks with the conservative People's Party (OVP) this week aimed at creating the country's first FPO-led government.

Ukraine won its first World Cup luge medal in more than 16 years. The country’s relay team — singles sliders Yulianna Tunytska and Andriy Mandziy, along with Ihor Hoi and Nazarii Kachmar on one doubles sled, Olena Stetskiy and Oleksandra Mokh on the other — finished third in a race at Sigulda, Latvia.