Russian Finance Minister Anton Siluanov said that Moscow is prepared to re-route supplies to other markets after fearing its energy companies would get targeted by Western sanctions. Russian President Vladimir Putin has repeatedly been warned of “massive” sanctions by both the EU and the US as he appears to be eyeing up an invasion of Ukraine. But the West has also been warned by experts that Russia could cut the EU’s gas, of which it supplies around 40 percent, as retaliation.
Now, Mr Siluanov has threatened to do just that, although he did not specify where energy exports would be diverted to.
Mr Putin has already shown he is willing to divert gas away from the West, given that gas flowing through the Yamal-Europe pipeline has been in reverse since December.
The gas usually travels West, but the diversion to the East saw European prices skyrocket to record highs in December, surpassing October records.
As Russia has been warned that its largest banks, its economy and its energy sector, could get hit with export controls, Mr Siluanov has stressed that Russia can strike back.
He told reporters: “Any export curbs would result in rising prices. And if such restrictions are to be applied then increases in prices should largely offset such curbs.”
But gas is not the only Russian import Europe might have to worry about if it slaps sanctions down on Russia.
In fact, Russian imports account for 46 percent of Europe’s solid fuels like coals, and 26 percent of its crude oil.
This also comes as Mr Putin looks poised to strike a gas deal with Pakistan.
Pakistani Prime Minister Imran Khan is set to meet with his Russian counterpart in Moscow next week.
it is expected that Mr Khan will offer the Kremlin a lucrative contract to build a new pipeline, carrying gas through Pakistan.
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EU Energy Commissioner Kadri Simson said: “It is important that all member states work on preparedness and review contingency plans to ensure they are fit for purpose.
“The Commission is conducting an assessment of the situation at European level in liaison with member states.
“We think that the available gas stocks in the EU and our good network of LNG terminals will protect us against major security of supply problems.”