Putin Threatens Early Halt of Gas Supplies to EU as Energy Markets Already Strained

CMB News | Energy & Commodity Markets | March 2026

Russia may consider stopping natural gas deliveries to the European Union ahead of the bloc’s planned embargo, President Vladimir Putin said in a televised interview, raising fresh concerns over energy security in Europe.

According to Putin, Russia is evaluating whether it would be economically advantageous to end gas exports to European markets sooner than required by EU sanctions.

“New markets are opening for us,” Putin said. “It might be more profitable to stop supplies to the European market now and focus on partners who are more reliable.”

No final decision has been taken, but the Russian government and energy companies have been asked to assess the option.

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Energy Markets Already Under Pressure

The remarks come at a particularly sensitive moment for global energy markets.

The conflict in the Middle East has already tightened gas supplies and pushed prices higher in Europe. A potential halt of Russian gas flows could further increase volatility and drive prices upward.

Europe experienced a similar shock in 2022 following Russia’s invasion of Ukraine, when gas prices surged to record levels and energy markets faced severe supply disruptions.

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Europe Still Imports Russian LNG

Despite sanctions and diversification efforts, Europe continues to import Russian gas.

According to recent trade data:

• EU imports of Russian LNG reached about €7.4 billion in 2025
• This represented a slight decline compared with €7.6 billion in 2024

Overall EU LNG imports totaled roughly €46 billion, with the largest share — about €24.2 billion — coming from the United States.

The European Union plans to eliminate Russian gas imports entirely by 2027.

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Russia Redirecting Energy Exports

In recent years, Russia has shifted its energy export strategy toward Asian markets.

Gas exports to China have increased significantly, while other Asian markets are also being explored as alternatives to Europe.

Putin emphasized that Russia still views itself as a reliable supplier to certain European customers, particularly countries that maintain closer energy ties with Moscow.

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Implications for Commodity Markets

A sudden disruption of gas flows would not only affect energy markets but could also ripple across global commodity supply chains.

Higher gas prices tend to increase costs in several sectors:

• fertilizer production
• food processing
• agricultural logistics
• grain drying and storage

As a result, energy volatility can indirectly drive higher prices for agricultural commodities and food products.

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Market Outlook

Energy traders are now watching two key variables:

1. Whether Russia actually halts gas flows to Europe early
2. How long geopolitical tensions continue to disrupt global energy supply

If Russian deliveries were suspended while Middle East tensions remain high, European gas prices could rise sharply again, increasing inflationary pressure across food and commodity markets.

For now, the threat remains a possibility rather than a confirmed policy shift — but one that markets cannot ignore.