Russian energy companies may soon redirect part of their liquefied natural gas supplies away from Europe toward the markets of so-called “friendly countries”—notably China, India, Thailand, and the Philippines. This was stated by Deputy Prime Minister Alexander Novak.
According to him, Russian businesses do not intend to wait for new restrictions from the European Union and are already considering alternative export destinations.
“Our companies are exploring opportunities, without waiting for the next round of restrictions from Europe, to conclude new long-term contracts with our partners and redirect part of the gas from Europe to other countries—including India, Thailand, the Philippines, and China,” RBC quoted Novak as saying.
On March 4, Russian President Vladimir Putin instructed the government to examine the option of completely halting gas supplies to Europe. According to him, it may prove more advantageous for Moscow to stop exports now rather than wait until European countries fully abandon Russian fuel.
In January, European Union countries agreed on a plan to completely phase out Russian gas by 2027. Restrictions on LNG purchases under short-term contracts will take effect on April 25, while a full ban is scheduled to come into force in January 2027.
According to Eurostat, Russia currently accounts for about 16% of Europe’s LNG imports and roughly 13% of total gas supplies to the European Union. At the same time, the European Union remains the largest buyer of Russian LNG, accounting for about half of the country’s total export volume.
Against the backdrop of the war in the Middle East and the sharp rise in gas prices on the European market, Russian authorities are increasingly raising the possibility of halting LNG supplies to Europe.