Putin says EU phase-out of Russian gas will raise costs

President Vladimir Putin said efforts to exclude Russia from global gas markets would raise costs for consumers, addressing the Gas Exporting Countries Forum (GECF) summit in Moscow on October 27. He also said Russia was exploring joint Arctic projects with US companies.

"Any attempts to exclude Russia from the global gas market or restrain the development of our industry carry serious consequences. First and foremost, these are skyrocketing costs for foreign end consumers of gas: businesses, companies and households," Putin said.

The EU is phasing out Russian gas imports under a stepwise ban. Long-term LNG contracts are covered from January 1, 2027, while the pipeline gas prohibition takes effect on September 30, 2027, or November 1 if the EU confirms a risk to storage targets. EU Energy Commissioner Dan Jorgensen said on October 27 that the bloc did not intend to resume purchases after any Russia-Ukraine settlement, Vedomosti reported. Poland and Germany have ruled out a return. Russia's share of EU gas imports fell from 45% in 2021 to 13% in 2025, according to the European Council. Seaborne LNG partly offset lost pipeline volumes, The Moscow Times reported.

"We have a saying in Russia: 'Don't dig a hole for someone else or you'll fall into it yourself.' This is precisely what happened in EU countries," Putin said, arguing that Europeans were harming their own industry and households by refusing Russian energy at a time of high prices, the continent's lingering gas crisis.

The global gas industry has been hit by broken supply chains, changed routes and restrictions on access to technology, Putin said, citing the attacks on Russian pipelines to Europe and curbs on equipment sales. Significant volumes of supply had disappeared from the market in a short time, "but demand has not gone away", he said. Prices that had risen sharply could fall back just as quickly, he warned.

Putin called for existing gas routes to be reviewed and new supply routes developed, and said the market could only be stabilised by ending conflicts and lifting sanctions, which he described as a tool of unfair competition that ends up hurting the states that impose them. Summit participants adopted the Moscow Declaration, Vedomosti reported.

On the Arctic, Putin confirmed reports that cooperation with US companies had come up in his talks with White House envoy Steve Witkoff. "Until recently, European partners worked alongside us in our fields, and Chinese partners are still working there. Now, we're exploring the possibility of joint work with American partners," he said. Moscow has also been courting US buyers for its diesel and fertilisers.

Deputy Prime Minister Alexander Novak said on October 27 that Russia had supplied $320.7bn of energy to the EU since 2022, including $21.3bn in the first nine months of 2026, The Moscow Times reported. Speaking on the sidelines of the forum, Novak also said Chinese consumers were paying more for LNG than pipeline gas because of shortages, higher prices and long shipping routes, Interfax reported.