Russian President Vladimir Putin has suggested that Moscow could cease gas supplies to European markets, pivoting instead to more “promising” global buyers.
The comments come as the European Commission prepares to table a legal proposal on 15 April to permanently ban Russian oil imports, a move anticipated three days after Hungary’s parliamentary election, according to EU officials and a Reuters document.
Speaking to Russian state TV reporter Pavel Zarubin, Mr Putin stated: “And 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.”
He clarified, however, that this was “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.”
Mr Putin reiterated Russia’s long-standing reliability as an energy supplier, vowing to maintain this approach with dependable partners such as Slovakia and Hungary.
European gas prices have jumped 75 per cent this week, hitting multi-year highs as hostilities in and around Iran have impacted gas exports from the Gulf.
Benchmark Dutch and British gas prices extended their gains for the second day in a row and rose more than 40 per cent on Tuesday morning, as supply fears mounted after Iran and Israel stepped up attacks in the Middle East and Qatar halted production at its Ras Laffan liquefied natural gas plant, the world’s biggest export facility.
Europe has increased imports of LNG over the past few years as it seeks to phase out Russian gas following Russia’s invasion of Ukraine and will have to import more to fill is fast depleting storage.
The conflict in the Middle East has led to the effective closure of the Strait of Hormuz, through which nearly 20 per cent of the world’s LNG transits through, pushing prices up internationally.
The Dutch front-month contract at the TTF hub, a benchmark price for Europe, was up 18.384 euros at 62.755 euros per megawatt hour (MWh) or around $21.33/mmBtu, ICE data showed, having hit 63.490 euros/MWh the highest level since January 2023.
The British April contract was up 44.36 pence at 158.15 pence per therm, ICE data showed.