Russian tycoon warns of surge in global gas prices
The EU’s plan to phase out energy supplies from Moscow would hit its own citizens the hardest, the head of Novatek says
The EU could trigger an unprecedented surge in gas prices if it proceeds with plans to phase out imports from Russia, Leonid Mikhelson, chairman of the energy giant Novatek, warned on Friday.
Russia holds about 10% of the global liquefied natural gas (LNG) market, Mikhelson said at the Eurasian Economic Forum in Istanbul.
“Excluding the Russian suppliers from the global gas balance would be simply impossible. It would trigger an unprecedented price hike, and the European consumer would pay the most,” the head of Russia’s second-largest gas company said.
Mikhelson compared the potential fallout to the 2021 crisis, when a post-pandemic surge in demand pushed prices above $1,200 per 1,000 cubic meters. He added that Moscow would redirect its exports elsewhere if the EU enacts a complete ban on Russian gas.
Brussels reaffirmed its goal to end Russian imports by 2027 in the 19th sanctions package adopted last week. At the same time, several member states, including Hungary and Slovakia, have sharply criticized the plan.
The EU imported €5.8 billion ($6.7 billion) worth of Russian energy in the first quarter of 2025, mostly natural gas, according to Bild. Estimates by the Helsinki-based Center for Research on Energy and Clean Air (CREA) suggest that the EU was the biggest buyer of Russian LNG last month.
EU members have seen a sharp rise in energy costs since the bloc began imposing sweeping sanctions on Moscow in response to the Ukraine conflict.
In Germany, gas prices have risen 74% since 2021, Bild reported, estimating that a family of four has paid about €6,000 ($7,000) more for electricity and gas since 2022 than they would have if prices and supplies had remained stable.
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