Vladimir Putin has warned that Russia could redirect its gas exports away from Europe as the conflict in the Middle East drives energy prices higher.
Speaking on state television, the Russian president said the Kremlin would consider shifting supplies to more profitable markets in Asia following the outbreak of war involving Iran.
“Other markets are opening now. Maybe it’s better for us to end supplies to the European market right now? To go to those markets that are opening now and get a foothold there,” Putin said, adding that he would instruct the government to examine the proposal with Russian energy companies.
European gas prices have surged by about 58% since late last week, before the US and Israel launched missile strikes on Iran, reaching around €49.6 per megawatt hour by Wednesday. Any further disruption to Russian supplies could push prices even higher.
Pipeline deliveries from Russia to Europe have already fallen sharply since the outbreak of the Russian invasion of Ukraine. The European Union is planning a gradual ban on Russian gas imports from late 2027. Despite this, Russia remains the bloc’s second-largest supplier of liquefied natural gas after the United States.
In January, EU imports of Russian LNG reached a record 2.3bn cubic metres, more than 10% higher than a year earlier and accounting for nearly one-fifth of total LNG imports. Countries including Turkey, Serbia, Hungary and Slovakia also purchased around 18bn cubic metres of Russian gas last year through the TurkStream pipeline.
Putin’s warning came after Iran effectively shut the Strait of Hormuz, a key maritime passage that carries roughly a fifth of global seaborne oil and gas trade, sending energy markets into turmoil.
The disruption could have direct consequences for households. Analysts at Cornwall Insight estimate the conflict could add around £160 to UK household energy bills from July if prices remain elevated.
