Moscow, Russia. President Vladimir Putin said Russia could halt gas supplies to Europe immediately amid soaring energy prices linked to the Iran crisis. He tied the possibility to European Union plans to restrict and ban purchases of Russian pipeline gas and liquefied natural gas.
Price surge and disruptions in the Middle East
Oil and gas prices have risen following the U.S. and Israeli attack on Iran and Tehran’s strikes on Gulf Arab neighbours. The conflict has paralysed shipping through the Strait of Hormuz and forced the shutdown of Qatar’s LNG production and Saudi Arabia’s largest oil refinery.
Putin said oil prices were rising due to the “aggression against Iran” and Western restrictions on Russian oil. He said European gas prices were rising because customers were willing to buy gas volumes at higher prices due to events in the Middle East and the closure of the Strait of Hormuz.
Link to EU plans on Russian gas
Asked by Russian state television’s top Kremlin correspondent Pavel Zarubin about European plans to impose a total ban on Russian pipeline gas imports by late 2027 and to ban new short-term Russian LNG contracts from late April 2026, Putin said it might be more beneficial for Russia to stop selling gas to Europe now.
“Now other markets are opening up. And perhaps it would be more profitable for us to stop supplying the European market right now. To move into those markets that are opening up and establish ourselves there,” Putin said, according to a transcript released by the Kremlin.
“This is not a decision, it is, in this case, what is called thinking out loud. I will definitely instruct the government to work on this issue together with our companies,” Putin said, linking the possible decision directly to Europe’s “misguided policies”.
Russia’s role in European gas and market shifts
Russia holds the world’s largest natural gas reserves and is the world’s second-largest oil exporter. Moscow lost most of its European market after Europe sought to reduce dependency on Russian energy following the invasion of Ukraine in 2022.
Russia’s place in the European market has been taken by Norway, the United States and Algeria.
Russia used to supply about 40% of the EU’s pipeline gas, and last year it supplied 6%, according to the EU.
In 2007, state-controlled Russian gas giant Gazprom was the world’s third-largest company with a market capitalisation of more than $330 billion, and it is now worth $40 billion.
Putin said Russia was a reliable supplier but that the energy chaos triggered by the Iran crisis had led buyers to be willing to pay top dollar for gas volumes.
How could a halt in Russian gas supplies affect energy prices where you live?
