Published by Global Banking & Finance Review®
Posted on March 4, 2026
4 min readLast updated: April 2, 2026
Add as preferred source on GoogleOn March 4, 2026, President Putin mused that Russia might halt gas exports to Europe and focus on “more promising markets,” framing it as informal “thinking out loud” rather than a firm policy; he said he’d direct the government and energy firms to explore the idea.
By Guy Faulconbridge, Marina Bobrova and Vladimir Soldatkin
MOSCOW, March 4 (Reuters) - Russia could halt gas supplies to Europe right now amid a spike in energy prices triggered by the Iran crisis, President Vladimir Putin warned on Wednesday, linking the possible decision to the European Union wanting to ban purchases of Russian gas and liquefied natural gas.
Oil and gas prices have soared following the U.S. and Israeli attack on Iran and Tehran's strikes on Gulf Arab neighbours. The conflict has paralysed shipping through the Strait of Hormuz and forced the shutdown of Qatar’s LNG production and Saudi Arabia’s largest oil refinery.
Putin said oil prices were rising due to the "aggression against Iran" and due to Western restrictions on Russian oil, while 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.
Asked by a Russian state television's top Kremlin correspondent Pavel Zarubin about European plans to impose a total ban on Russian pipeline gas imports by late 2027 and to ban new short-term Russian LNG contracts from late April 2026, Putin said it might be more beneficial for Russia to stop selling the gas right now.
"Now other markets are opening up. And perhaps it would be more profitable for us to stop supplying the European market right now. To move into those markets that are opening up and establish ourselves there," Putin said, according to a transcript released by the Kremlin.
"This is not a decision, it is, in this case, what is called thinking out loud. I will definitely instruct the government to work on this issue together with our companies," Putin said, linking the possible decision directly to Europe's "misguided policies".
Russia holds the world's largest natural gas reserves and is the world's second-largest oil exporter. Moscow lost most of its lucrative European market after Europe sought to reduce its dependency on Russian energy due to the invasion of Ukraine in 2022.
Russia's place in the European market has been taken by Norway, the United States and Algeria.
Russia used to supply about 40% of the EU's pipeline gas. Last year, it supplied just 6%, according to the EU. In 2007, state-controlled Russian gas giant Gazprom was the world's third-largest company with a market capitalisation of more than $330 billion. It is now worth just $40 billion.
Putin said Russia was a reliable supplier but that the energy chaos triggered by the Iran crisis had led to buyers being willing to pay top dollar for gas volumes.
"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," Putin said. "This is natural; there's nothing here, there's no political agenda - it is just business."
"If such premium buyers emerge, then I think, I'm even certain, some traditional suppliers, such as the Americans and American companies, will, of course, leave the European market for higher-paying markets," Putin said.
With Europe turning away from Russian gas, Moscow has turned increasingly to China, the world’s leading consumer and importer of energy, for sales of oil, pipeline gas and LNG.
"Russia has always been and remains a reliable energy supplier to all our partners, including, incidentally, European ones," Putin said. "And we will continue to work in this manner with those partners who are themselves reliable partners - for example, those in Eastern Europe, such as Slovakia and Hungary."
(Writing by Guy Faulconbridge; editing by Nia Williams)
Putin suggested that Russia could stop supplying gas to European markets and focus on more promising markets, though it was not a formal decision.
No, Putin clarified that his statement was thinking out loud and not a formal decision.
Putin indicated he would instruct the government to work on the issue with Russian companies.
The comments were reported by Reuters and edited by Sharon Singleton.
Explore more articles in the Finance category
