Russian Deputy Prime Minister Alexander Novak announced that the government will meet soon to discuss halting gas exports to Europe, after President Vladimir Putin said the Russian government could cut off supplies due to rising energy prices as a result of the Middle East conflict.
“The government will hold a meeting to discuss the possibility of cutting off gas supplies to Europe in implementation of President Putin’s instructions, and at the same time discuss ways to direct Russia’s energy resources to the most profitable markets,” Novak said at a press conference today.
Russia’s gas exports to Europe have been declining sharply since 2022. Due to sanctions related to the Ukraine war, Moscow nevertheless remains the second largest supplier of liquefied natural gas to the European Union.
13% price increase
Natural gas prices in Europe continued to rise strongly, recording one of the largest waves of increases in recent years, given the continuing war in the Middle East and its impact on global energy flows.
Europe’s standard gas contract rose 13% in the day’s trading as concerns continued over supply disruptions through the Strait of Hormuz.
Concerns grew after Qatar’s Ras Laffan facility, the world’s largest liquefied natural gas export center, was shut down following an Iranian drone attack.
Some countries are starting to explore alternative means of supply, with Taiwan announcing it will secure April gas shipments from outside the Middle East, while Thailand is seeking additional shipments to shore up supplies.
Russian Deputy Prime Minister Alexander Novak announced that the government will meet soon to discuss halting gas exports to Europe, after President Vladimir Putin said Russia could cut supplies due to soaring energy prices caused by conflict in the Middle East.
“Following President Putin’s instructions, the government will hold a meeting to discuss the possibility of cutting off gas supplies to Europe, while exploring ways to redirect Russia’s energy resources to more profitable markets,” Novak said at a press conference today.
Russia’s gas exports to Europe have sharply declined since 2022 due to sanctions related to the Ukraine war. However, Moscow remains the second largest supplier of liquefied natural gas to the European Union.
13% price increase
Against the backdrop of the ongoing war in the Middle East and its impact on global energy flows, natural gas prices in Europe continued to rise significantly, registering one of the largest increases in recent years.
European gas futures rose as much as 13% on the day as concerns about supply disruptions through the Strait of Hormuz continued.
Anxiety increased after Qatar’s Ras Laffan facility, the world’s largest liquefied natural gas export center, was shut down following an Iranian drone attack.
Some countries are starting to explore alternative sources of supply, with Taiwan announcing it has secured April gas shipments from outside the Middle East, while Thailand is seeking additional shipments to shore up supplies.
