Putin Could Impose ‘Total Cut-Off’ Of Europe Gas Supply; Global Recession ‘Looming’

Russian President Vladimir Putin could completely cut off Europe from the list of countries it supplies gas to, a move that could usher in a global recession, according to a top official in France.

Speaking at the Rencontres Economiques conference in Aix-en Provence, French Economic and Finance Minister Bruno Le Maire warned France and the rest of Europe to prepare load-shedding plans as well as assess where they can reduce energy usage, adding that Russia would likely decide to cut them off from its gas supply.

“Let's prepare for a total cut-off of Russian gas; Today that is the most likely option,” Le Maire was quoted as saying by Telegraph. “It means looking in a very specific way at each company, each employment area. Which are the companies that should reduce their energy consumption, and which are the ones that cannot.”

His remark comes as Carsten Brzeski, an economist at ING, warned that European nations and other nations would sink into a recession regardless of whether Putin pushes through with cutting off the gas supply.

“The looming recession, not only in the eurozone but also in the US, along with doubts about debt sustainability in the eurozone, should prevent the ECB from going beyond the initial normalization, keeping rates on hold in 2023,” he said.

Some nations are now bracing for a more severe backlash over energy as the West continues to send arms to Ukraine amid the war orchestrated by Putin, who earlier this week claimed they have barely started their military campaign.

In France, officials are calling for households and businesses to reduce energy consumption. Le Maire also suggested drawing up plans for the construction of a plant that could regasify liquid natural gas.

In Germany, lawmakers have passed the Energy Security Act, which would allow the use of coal-fired power plants to generate electricity. This move would then allow gas-fired plants to reserve gas for heating. Previously, Germany was steadily reducing the use of coal in the interest of climate protection.

In Canada, authorities have temporarily exempted Russian gas turbines from sanctions to “support Europe’s ability to access reliable and affordable energy” as they continue to transition away from relying on Russian gas and oil.