Russian President Vladimir Putin said Tuesday that Europe is hurting its own industry and social sphere by rejecting Russian energy.
Speaking at the 8th summit of the Gas Exporting Countries Forum (GECF) in Moscow, Putin said any attempt to exclude Russia from global gas market participants has serious consequences.
"Above all rising, exorbitant costs for foreign end consumers of gas: companies, enterprises, households," Putin warned. "This is exactly what we see now in Europe, which itself is striking a blow at its industry and social sphere by abandoning Russian energy resources and breaking long-term contracts."
Putin cited a Russian proverb to describe the situation in European Union countries: "Don't dig a pit for another, or you will fall into it yourself."
Putin said the global gas industry is in a state of "uncertainty" due to the escalation in the Middle East, which disrupted usual logistics chains and supply routes, and what he called direct terrorist acts against Russian gas pipelines to Europe, which were blown up.
He also said some countries have put up barriers to purchases of specialized equipment and technology.
"Prices have risen sharply, but we understand that they can roll back just as sharply to the previous level," he said, adding that many investment plans have been put on hold, postponed, or canceled, increasing the risk of long-term market imbalance.
Putin said the main problem now is the disruption of gas supplies, with large volumes dropping out of the market while demand remains.
He proposed that GECF members optimize transport routes through mutual swap operations, noting that liquefied natural gas (LNG) accounts for about half of world gas trade and does not depend on international pipelines.
Putin also pointed to the OPEC Plus format as a successful example of balancing the oil market, while saying the gas industry needs its own mechanisms.
"We propose to expand consultations within our forum on crisis situations in the gas market in order to assess risks in a timely manner, including physical threats to gas infrastructure, and to coordinate approaches to deliveries," he said.
The Russian president also called for long-term contracts to support investment in new fields, processing capacity, shipping fleets, and LNG infrastructure, saying that such projects "cannot be guided only by the current high price conditions."
Putin also urged technological cooperation among gas exporters and said Russia is ready to share its technologies, including deep-horizon gas production, its own LNG technology used in the Arctic, and digital twins of gas fields.
Putin said that until recently European partners worked with Russia on its Arctic fields, and Chinese partners are still doing so.
"Now we are working on the possibility of joint work with American partners," he said.
Putin said GECF members hold 70% of the world's natural gas reserves and about 40% of global exports. He said gas accounts for a quarter of the world's energy balance, with consumption up 1.2% last year to 4.2 trillion cubic meters.
He said global demand is expected to reach 5.5 trillion cubic meters a year by the middle of the century, with international supplies rising about one-and-a-half times to 1.7 trillion cubic meters.
Russia ranks first in the world in natural gas reserves and second in production, Putin said, adding that it intends to remain a responsible supplier.
He invited the summit's delegates to return to Moscow next year for the 10th Russian Energy Week.
