Russian President talks about gas crisis in Europe

Consequences of the gas crisis

"This also has certain consequences for us. I'm not talking about energy now. So we are not interested in endless growth in the prices of energy sources, including gas. We are not interested," he said at a meeting with members of the government.

Mr. Putin noted that the reduction in electricity production from coal and nuclear fuels in a number of countries, the world's leading economies, the difficult winter last year, the lack of wind power sources led to shortages and lack of injection into underground gas storage facilities.

Russian President Vladimir Putin. Photo: Reuters

"And that made the market nervous. Coupled with the growth in consumption in Asia. As a result, American companies rerouted their liquefied natural gas flows from Europe to the Asian market. All of this led to the situation we are seeing now," the President said.

There are also deeper reasons related to rising budget deficits and disruptions in the supply chain of goods, resulting in rising inflation in leading economies, he added.

What worries the Russian President in the current situation?

“What worries me, and I understand that the Russian government also worries about, are the possible consequences. I mean, among other things, the measures to support the population proposed by some of our colleagues in Europe. What will this lead to in practice: it will lead to not a decrease in consumption by the population, but a decrease in consumption in industry,” President Putin said.

Gas is a vibrant market in Europe. Illustration photo

According to Mr Putin, this “will have further consequences” that will ultimately affect people and increase the price of goods.