Russia ready to supply energy to Europe if it signals interest: Putin

MOSCOW/ISTANBUL

Russian President Vladimir Putin said Russia is ready to supply energy to Europe if European countries signal interest, while noting that Moscow is increasing oil and gas deliveries to what he described as “reliable partners” in several regions.

Speaking at a meeting on the global oil and gas markets situation, Putin said Russia will continue supplying oil and gas to its “reliable counterparties.”

“I'm referring not only to our partners in the Asia-Pacific region, but also to countries in Eastern Europe, such as Slovakia and Hungary,” he said, adding that Moscow already increased deliveries to its “reliable partners, and in several regions worldwide.

Putin added that the EU is planning to introduce additional restrictions on the purchase of Russian hydrocarbons, including liquefied natural gas, with a complete ban on such supplies expected by 2027, offering to halt Russia’s energy supplies.

“Rather than wait for the door to be slammed in our faces, we must do so now, divert these volumes from the European market to more attractive destinations and, most importantly, gain a foothold there,” Putin said.

However, he indicated that Moscow remains open to working with European countries on energy supplies, stressing that cooperation would depend on signals from European capitals about their readiness to work free from political considerations.

"If European companies and European buyers suddenly decide to reorient themselves and provide us with long-term, sustainable cooperation, free from political considerations, then please do so. We have never refused, and we are ready to work with Europeans as well," Putin said.

The Russian president further said global oil prices have risen sharply in recent weeks, increasing by more than 30%, underlining that Moscow repeatedly warned that attempts to destabilize the Middle East will inevitably jeopardize the global fuel and energy complex.

Putin said logistical problems along the hydrocarbon transport routes are disrupting global production chains and driving inflation, noting that about a third of the world’s seaborne oil exports pass through the Strait of Hormuz, which is now "effectively closed."

“Oil production, which relies on the strait, risks stopping completely within the next month. It has already begun to decline, and storage facilities in the region are filling up with oil that cannot be shipped out -- is either extremely difficult to ship out, or is extremely expensive to ship out,” he said.

Putin added that gas prices are also rising, in his view even faster than oil prices, due to falling liquefied natural gas supplies from the Middle East.

He said competition among buyers for stable energy supplies is intensifying under current conditions, adding that Russian energy companies have long been known for their reliability and stability as suppliers.

Gulf Arab oil producers have reduced output as crude accumulates in storage facilities due to the closure of the Strait of Hormuz. Oil tankers have largely avoided the narrow waterway amid the ongoing US-Israeli attacks on Iran and concerns that Tehran could target vessels transiting the route.