Europe May Face Energy Rationing As "Tough Winter" Looms Amid Escalating Gas Prices, Warns Shell CEO

Europe will likely need to ration access to energy this winter if Russia completely suspends gas exports to the continent, according to Shell chief executive officer (CEO) Ben van Beurden.

Russia's President Vladimir Putin had last week said that the efforts of European countries to substitute Russian energy sources have resulted in increase in prices on the gas spot market, and end users are paying more for energy.

Putin also warned of “catastrophic consequences” for global energy markets if western powers impose further sanctions on Moscow over Russia’s invasion of Ukraine in February.

“We will be facing a really tough winter in Europe,” Van Beurden was quoted by the Financial Times as saying in an energy conference in Oxford on Thursday (14 July).

“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,” he said.

“In the worst case we will be in a situation where we have to ration," the Shell CEO said.