Europe may have to ration energy as Vladimir Putin is able and willing to weaponize supplies, Shell CEO says
- Europe could be forced to ration its energy this winter if Russia slashes gas flows further, Shell’s chief executive said Thursday.
- Ben van Beurden added that Vladimir Putin is “ready and wiling to weaponize energy supplies.”
Europe could be forced to ration energy supplies this winter as Russian gas flows remain uncertain, Shell’s chief executive said Thursday.
Ben van Beurden told an energy conference in Oxford that he expected prices to continue to rise while Russian President Vladimir Putin has shown he is “able and willing to weaponize energy supplies,” with a complete cutoff on the table.
“I think we will be facing a really tough winter in Europe,” he said. “Maybe some countries will fare better than others, but I think we will all be facing very significantly escalating pricing, so there will be a lot of pressure on industry and therefore there will be a lot of pressure on the economy… In the worst case, we will be in a situation where we have to ration.”
The warning follows Russia’s shuttering of its main gas pipeline to Germany on Monday for scheduled maintenance. Germany has called out Moscow for using technical difficulties as an excuse to lower output to Europe and drive up the price of gas in retaliation for Western sanctions imposed after Russia invaded Ukraine. Berlin is worried that flows won’t come back at all once the maintenance is completed.
Meanwhile, Putin has doubled down on previous threats, saying on July 8 that the energy market would face “catastrophic consequences” if Western sanctions go further. Russia has already cut off Bulgaria and Poland over a refusal to make payment in rubles.
Van Beurden isn’t alone in his stark outlook for energy supplies. International Energy Agency Executive Director Fatih Birol warned last month that Europe should prepare for a complete cutoff in Russian gas supplies this winter.
