Russian Tycoon Warns of Global Gas Price Surge if EU Cuts Off Russian Imports

Nov 1, 2025 at 08:11 AM

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Lanka Leader

The European Union could trigger an unprecedented spike in global gas prices if it follows through with plans to completely phase out imports from Russia, warned Leonid Mikhelson, chairman of energy giant Novatek, on Friday(31).

Speaking at the Eurasian Economic Forum in Istanbul, Mikhelson noted that Russia currently accounts for about 10% of the world’s liquefied natural gas (LNG) market. “Excluding Russian suppliers from the global gas balance is simply impossible. Such a move would unleash an unprecedented price surge, and European consumers would bear the brunt,” he cautioned.

The Novatek chief compared the potential fallout to the 2021 energy crisis, when post-pandemic demand sent prices soaring above $1,200 per 1,000 cubic meters. He added that if the EU proceeds with a full ban, Moscow will redirect its gas exports to other markets.

Brussels reaffirmed its target to eliminate Russian energy imports by 2027 under its 19th sanctions package adopted last week. However, several member states—including Hungary and Slovakia—have voiced strong opposition to the plan.

According to Bild, the EU imported €5.8 billion ($6.7 billion) worth of Russian energy in the first quarter of 2025, mainly natural gas. Data from the Helsinki-based Center for Research on Energy and Clean Air (CREA) also showed that the EU remained the largest buyer of Russian LNG last month.

Since the imposition of sweeping sanctions on Moscow over the Ukraine conflict, EU countries have faced soaring energy costs. In Germany alone, gas prices have risen 74% since 2021. Bild estimates that an average family of four has spent roughly €6,000 ($7,000) more on electricity and gas since 2022 than they would have under pre-crisis conditions.