Putin Threatens to Cut Europe's Gas
Russian President Vladimir Putin has warned he could halt most natural gas supplies to Europe "right now." The threat comes as energy prices are already spiking from the Iran crisis and EU restrictions on Russian gas, forcing Russia to seek alternative markets for its energy exports.
The European Union is actively working to eliminate its reliance on Russian energy, with a stated goal of phasing out all Russian fossil fuel imports by 2027. This move follows a dramatic reduction in Russian pipeline gas, which fell from supplying approximately 40% of the EU's needs to just 6% by 2025. Despite this, the EU remains the largest buyer of Russian liquefied natural gas (LNG). Recent escalations in the Middle East have caused significant volatility in energy markets, with European gas prices surging by as much as 58% in late February and early March 2026. The conflict has disrupted shipping through the crucial Strait of Hormuz and led to production halts at major facilities in Qatar and Saudi Arabia, tightening global supplies. This price shock has raised concerns about a renewed spike in inflation across Europe. In response to EU sanctions and the changing market, Russia is accelerating its pivot to Asian markets, particularly China. Moscow has been expanding energy trade with Asian partners and is moving forward with major infrastructure projects to facilitate this shift. A key project is the Power of Siberia 2 pipeline, designed to carry up to 50 billion cubic meters (bcm) of natural gas annually from Russia's Yamal Peninsula to northern China via Mongolia. This is in addition to the existing Power of Siberia pipeline, which is expected to ramp up to delivering 38 bcm per year by 2025. If Power of Siberia 2 becomes fully operational, total Russian gas exports to China could exceed 100 bcm annually after 2030. While the overall EU dependency on Russian gas has plummeted, some member states, such as Hungary and Slovakia, continue to receive significant supplies. In a sign of Russia's shifting customer focus, Putin has emphasized that Moscow will continue to work with countries it deems reliable partners. Despite the EU's diversification efforts, it remains a significant destination for Russian energy products. In February 2026, 100% of all LNG exports from Russia's Yamal project were delivered to EU ports. This highlights Europe's continued role in providing revenue for Moscow's energy sector, even as it officially pursues a policy of disengagement.
