Russia expects lower gas output and exports amid Western sanctions and EU phase-out plan

Russia's Ministry of Economy projects that both domestic natural-gas production and export volumes will be lower than previously forecast for one outlet year. The decline is tied to the broken economic relationship with Western countries and the European Union's plan to cease all Russian gas purchases. Kremlin representatives claim European nations are paying inflated prices on other markets and maintain that Russia could resume shipments at any time, even through the submerged Nord Stream routes.

Historically, Russia supplied about 180 billion cubic metres of gas to Europe in 2018-19, but deliveries have fallen dramatically after the Ukrainian transit route was closed and the EU pursued energy independence. The EU has kept its target to end Russian gas imports by 2027, and last year exports to Europe fell by roughly 44 percent to a level not seen since the mid-1970s. This outlook follows a recent revision of Russia's oil-production forecast, now at its lowest point in 17 years.