OREANDA-NEWS  If the decision of the European Union (EU) to abandon Russian gas remains in force, the situation with liquefied natural gas (LNG) in the world will become even worse, said Leonid Mikhelson, head of Novatek, during the Verona Eurasian Economic Forum.

"If the EU's decision to reject Russian supplies remains in force, the situation will only worsen," he said, commenting on the shortage of LNG on the global market amid the situation in the Middle East and rising energy prices.
 
Mikhelson recalled that the situation with high gas prices, which can be observed in the world at the moment, is not new. "We saw them in 2021-2022," he said.
 
The economic consequences of such crises, as this year, can be assessed using the example of Europe, the head of Novatek emphasized. According to him, 160 of the largest chemical industry plants in the European Union have already been closed. In Germany, the industrial production index has been falling for four years in a row, and fertilizers have risen in price by 70%. However, despite these factors, the EU still decided to abandon the supply of Russian LNG from January 1, 2027.

"There are still 71 days until this date. Perhaps Europe will re-evaluate whether this decision is necessary? Shouldn't it be canceled? There is still time," Mikhelson concluded.

In January, the EU Council approved a regulation on phasing out imports of Russian LNG and pipeline gas. The ban on LNG imports under short-term contracts entered into force on April 25, 2026, for long-term contracts it will take effect on January 1, 2027, and the ban on pipeline gas - from June 17, 2026 for short-term contracts and from November 1, 2027 for long-term contracts.