Russian President Vladimir Putin on Wednesday suggested Moscow could halt natural gas supplies to Europe, potentially escalating energy tensions already heightened by conflicts in the Middle East and a surge in global prices. The remarks came as the European Commission prepares to propose a permanent ban on Russian oil imports, a move anticipated shortly after Hungary’s parliamentary election on April 15, according to EU officials.
Speaking to Russian state TV reporter Pavel Zarubin, Putin stated that shifting to alternative markets could prove more profitable for Russia. “And now other markets are opening up. And perhaps it would be more profitable for us to stop supplying the European market right now,” he said, characterizing the consideration as “thinking out loud” and instructing his government to explore the possibility with energy companies. Putin reiterated Russia’s commitment to maintaining reliable energy supplies to partners like Slovakia and Hungary.
The potential disruption comes amid a significant spike in European gas prices. Prices jumped 75% this week, reaching multi-year highs, fueled by escalating hostilities in and around Iran and the subsequent impact on gas exports from the Gulf region. Benchmark Dutch and British gas prices rose more than 40% on Tuesday alone as supply fears mounted, particularly after Qatar halted production at its Ras Laffan liquefied natural gas plant, the world’s largest export facility.
Europe has been actively increasing its imports of liquefied natural gas (LNG) in recent years as part of a broader effort to reduce its reliance on Russian gas following the invasion of Ukraine. However, filling storage capacity will require further increases in LNG imports, a challenge given current global supply constraints. The conflict in the Middle East is exacerbating these concerns, disrupting shipping routes and prompting precautionary shutdowns of oil and gas facilities across the region.
Putin’s comments linked the potential gas supply halt to the European Union’s planned ban on Russian oil and liquefied natural gas. He too cited rising oil prices as a consequence of “aggression against Iran” and Western restrictions on Russian energy exports. The suggestion to cease gas supplies to Europe represents a significant escalation in the ongoing energy standoff between Russia and the West, raising the prospect of further price volatility and potential shortages.
The immediate trigger for Europe’s energy alarm is the disruption of the Strait of Hormuz, a critical waterway for global oil and gas shipments, through which more than 20% of the world’s oil and roughly 20% of the world’s liquefied natural gas passes. The conflict has led to precautionary shutdowns of facilities in the Gulf region, including Qatar’s LNG production.
