Putin threatens to halt gas supplies to Europe amid Iran war
Following the US and Israeli attack on Iran and then Tehran's strikes on Gulf Arab neighbours the price of oil and gas have increased.
Moscow: Amid the US and Israeli attack on Iran, Russia could stop gas supplies to Europe soon, President Vladimir Putin said on Wednesday. The development comes after the European Union decision to ban purchase of Russian gas and liquefied natural gas.
What is the reason of increase in price?
Following the US and Israeli attack on Iran and then Tehran's strikes on Gulf Arab neighbours the price of oil and gas have increased.
Due to the conflict shipping of oil through the Strait of Hormuz have been affected and forced the shutdown of Qatar’s LNG production and Saudi Arabia’s largest oil refinery.
What did the Putin say?
Russian President said that Moscow might consider halting gas supplies to European markets entirely.
Talking about rising oil prices, Vladimir Putin said due to the "aggression against Iran" and due to Western restrictions on Russian oil, the price of oil prices is soaring.
While replying to the question regarding European plans to impose a total ban on Russian pipeline gas imports by late 2027, Putin said that, "Maybe it would make sense for us to stop supply of gas to European markets right now," further added that "Not a decision yet, I'm just thinking out loud."
"They... plan to introduce restrictions on the purchase of Russian gas, including liquefied gas, in a month... and further restrictions, up to a complete ban, in a year, in 2027," he said.
"And now other markets are opening up. And it might be more profitable for us to stop supplies to the European market right now. To move to those markets that are opening up and gain a foothold there."
What is the reason of price rise in European gas?
Putin also said that European gas prices were rising because customers were willing to buy gas volumes at higher prices due to events in the Middle East and the closure of the Strait of Hormuz.
"Customers have emerged who are willing to buy the same natural gas at higher prices, in this case due to events in the Middle East, the closure of the Strait of Hormuz, and so on," he said.
