Goodbye, Europe! – Russian government discuss halting gas exports to Europe

Alexander Novak
Photo: TASS

Russian companies will partly redirect liquefied natural gas (LNG) supplies from Europe to friendly countries without awaiting next restrictions of the European Union, Russian Deputy Prime Minister Alexander Novak told reporters.

"Our companies are considering opportunities, without waiting for the next restrictions from Europe, to make new long-term contracts with our partners, redirect gas from Europe in part to other countries, including India, Thailand, the Philippines, and the People’s Republic of China," Novak said.

The Russian government discussed the instruction of President Vladimir Putin with companies and "the decision was made that a portion of liquefied natural gas volume now supplied to Europe, to European markets, will be redirected to other markets whether the requirement is present, where meaningful and pragmatic relations are being built with us now, and where we have the long-term demand and the opportunity to enter into long-term contracts," Novak said.

The LNG volumes currently supplied to Europe will be redirected to other markets

The Russian government sees high demand for its LNG in friendly countries and the potential for signing long-term contracts, according to a cabinet statement following a meeting between Alexander Novak, industry ministries, and oil and gas company representatives.

"In accordance with the instructions of the Russian President, we addressed this issue today (redirecting gas supplies from Europe to other markets - TASS). We discussed in detail the current situation and the possibilities for rerouting gas. We decided that some of the LNG volumes currently supplied to Europe will be redirected to other markets where constructive, pragmatic relations are being built with our country, where there is demand and the opportunity to enter into long-term contracts," Novak said.

At the meeting he also noted that the global oil and gas market is currently experiencing high turbulence and uncertainty due to the situation in the Middle East. This leads to higher energy prices in some regions of the world, as well as the emergence of new logistical challenges for the industry as a whole, Novak said.

A serious shortage is developing on the global market

A global supply deficit has pushed EU gas prices up 70%, increasing costs for consumers and affecting petrochemical and fertilizer production, Russian Deputy Prime Minister Alexander Novak told reporters.

"Today, a serious shortage is developing on the global market. Due to the shortage, prices in Europe have surged by 70%, while in the Asia-Pacific region, gas prices have almost doubled. The next round of restrictions on gas supplies from Russia will take effect on April 25. This will definitely have a very negative impact on European consumers, on gas prices in Europe, and on the European population. People will simply pay more," he said on the Zvezda TV channel.

"The gas shortage that is developing in the market as a whole will have a particular impact on Europe. This will also affect other sectors of the petrochemical and fertilizer industries," the Deputy Prime Minister added.

Novak stated that Russian companies would soon redirect some LNG supplies from Europe to friendly countries, including China, India, Thailand, and the Philippines, without waiting for further restrictions from the European Union. Russian authorities made this decision at a meeting with oil and gas companies, in accordance with President Vladimir Putin's instructions.

Earlier, President Vladimir Putin stated that, given the European Union's intention to completely abandon Russian gas, Russia could initiate an early exit from the European market and redirect supplies to other, more interested buyers.

In late January, the EU Council finally approved a ban on Russian LNG imports from January 1, 2027, and pipeline gas from September 30, 2027. However, the restrictions will be introduced earlier. LNG imports under short-term contracts will be banned from April 25, 2026, and short-term pipeline gas contracts must be completed by June 17, 2026.

LNG supplies from Russia to the EU in 2025 decreased by 5.6% to 20.3 billion cubic meters. Overall, Russia ranked fourth in gas supplies to the EU in 2025, after Norway, the United States, and Algeria, with 38 billion cubic meters. In January-February, Russian LNG supplies to the European Union increased by 11% and reached 4.5 billion cubic meters.

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