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INTERNATIONAL

IEA Issues Warning: Russia May Cut Off Gas Completely, Europe Must Act Now

The head of the International Energy Agency warned that Russia may cut off gas to Europe entirely as it seeks to bolster its political leverage during the Ukraine crisis.

IEA Executive Director Fatih Birol in a statement said he wouldn’t rule out Russia continuing to find excuses to further reduce gas deliveries to Europe – and maybe even cut it off completely.

He said a recent reduction in flows may be an attempt to gain political leverage ahead of higher-demand winter months. The IEA did not see a full cut-off as the most likely scenario.

The European Union has sanctioned Russian oil and coal, but has held off from banning gas imports because of its heavy reliance on supplies from Moscow.

In terms of total energy investment for 2022, the IEA said in a report that $2.4 trillion was set to be invested in the sector this year, including record spending on renewables. But it added that fell short of plugging a supply gap and tackling climate change.