(MENAFN) Leonid Mikhelson, chairman of Russia’s Novatek, cautioned that EU plans to phase out Russian gas could trigger a historic surge in global prices. Speaking at the Eurasian Economic Forum in Istanbul, he highlighted Russia’s significant role in the market, noting that it controls roughly 10% of global liquefied natural gas (LNG) supplies.

“Excluding the Russian suppliers from the global gas balance would be simply impossible. It would trigger an unprecedented price hike, and the European consumer would pay the most,” Mikhelson said, warning of severe consequences for European buyers.

He likened the potential impact to the 2021 energy crisis, when post-pandemic demand drove gas prices above $1,200 per 1,000 cubic meters. Mikhelson added that Russia would redirect exports to other markets if the EU fully implements a gas import ban.

Despite his warnings, Brussels reaffirmed its plan to end imports from Russia by 2027 as part of the 19th sanctions package adopted last week. Several EU states, including Hungary and Slovakia, have voiced strong opposition to the strategy.

In the first quarter of 2025, the EU purchased €5.8 billion ($6.7 billion) of Russian energy, primarily natural gas, according to reports. Analyses from energy research groups indicate that the EU remained the largest buyer of Russian LNG as recently as last month.

Energy prices across EU member states have surged sharply since sanctions were first imposed on Russia in response to the conflict in Ukraine, further intensifying concerns over the bloc’s energy security.

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