Putin acknowledges that Western sanctions have started to hurt Russia's oil and gas industry

Russian President Vladimir Putin warned that the consequences of further global disruption to the country's oil sector could be extremely painful, as he acknowledged that Western sanctions have already begun to upset Russia's energy industry.

According to media reports, Putin made the comments during a government video meeting from his home near Moscow. The president said banks from unfriendly countries were straining Russian energy exports.

As many of Russia's biggest energy customers in the European Union contemplate banning Russian oil and gas deliveries to punish Russia for its war in Ukraine, the president has admitted. The massive trading bloc has resisted the move so far because of the large costs it would incur for many European countries.

Some funding and technology of the sector have been targeted by sanctions and some trading partners are avoiding Russian energy altogether. The US and Canada have banned imports of Russian oil and gas.

Putin warned that those trying to shut out Russian suppliers would face consequences. The president said on Thursday that there is a scarcity of natural gas on the global market, and that if Europe looks to other countries to provide energy imports, the effects will be felt in people's standard of living.

He said there was no reasonable alternative to Russian gas in Europe.

Russia's crude is already being traded at a massive discount on the global market, as plummeting demand has led to a drop in crude-oil production that is impacting the entire Russian energy supply chain, according to The Wall Street Journal. According to the outlet, gas and oil sales made up 45% of Russia's federal budget in 2021.

Putin said on Thursday that Russia needs to replace equipment with substitute and reorient gas sales to the Asian market. The Journal reported that it could take years to do so.

According to estimates from the country's finance ministry, Russia is expected to rake in nearly $10 billion from energy sales in April. Russia has enough customers to keep the sector going. China and India have both bought 13 million barrels of Russian oil since the war started.