(MENAFN) The European Union risks triggering a historic surge in gas prices if it follows through with plans to phase out Russian imports, Leonid Mikhelson, chairman of energy giant Novatek, warned on Friday.

Speaking at the Eurasian Economic Forum in Istanbul, Mikhelson noted that Russia controls roughly 10% of the global liquefied natural gas (LNG) market.

“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,” he said.

Mikhelson likened the potential impact to the 2021 energy crisis, when post-pandemic demand spikes sent prices above $1,200 per 1,000 cubic meters. He added that Moscow would redirect exports to other markets if the EU imposes a full ban on Russian gas.

Brussels reaffirmed its objective to eliminate Russian imports by 2027 in the 19th sanctions package adopted last week, though several member states, including Hungary and Slovakia, have voiced strong criticism.

The EU imported €5.8 billion ($6.7 billion) in Russian energy during the first quarter of 2025, primarily natural gas, according to a German newspaper. Data from the Helsinki-based Center for Research on Energy and Clean Air indicate that the EU was the largest purchaser of Russian LNG last month.

Energy costs across EU countries have surged since the bloc imposed broad sanctions on Russia over the Ukraine conflict. In Germany, gas prices have climbed 74% since 2021, the newspaper reported, estimating that a family of four has spent roughly €6,000 more on electricity and gas since 2022 than they would have if prices and supply had remained stable.

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