Russian president Vladimir Putin has threatened to cut off energy supplies if price caps are imposed on Russia’s oil and gas exports as Europe faces its biggest energy crisis in decades, Reuters reported on September 7.
Cutting supplies from Russia, the world’s second largest oil exporter after Saudi Arabia and the world’s top natural gas exporter, would disrupt global energy markets further, leaving the world economy facing even higher energy prices.
Speaking at an economic forum in Russia’s Pacific city of Vladivostok, Putin said European calls for a price cap on Russian gas were “stupid”, and would lead to higher global prices and economic problems in Europe.
Putin’s comments follow G7’s plans to impose a price cap on Russian oil exports last week to restrict Russia’s ability to secure tankers and insurance from countries beyond the G7.
Russia would walk away from its supply contracts if the West went ahead with its plans, Putin said.
“Will there be any political decisions that contradict the contracts? Yes, we just won’t fulfil them. We will not supply anything at all if it contradicts our interests,” Putin said.
“We will not supply gas, oil, coal, heating oil – we will not supply anything,” he added.
Europe usually imports about 40% of its gas and 30% of its oil from Russia.
Putin also said that US and its allies will face an energy crisis as a result as a result of their economic war on Russia with the most severe sanctions in modern history.
Since the conflict began, European Union customers have pledged to reduce their reliance on Russian energy while Russia has cut or shut down supplies on three of its biggest westward gas pipelines while oil supplies have been redirected eastwards.