Putin: Europe's oil sanctions are 'economic suicide'

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Russian President Vladimir Putin said Tuesday that the oil sector was witnessing a "tectonic change", adding that Europe would be committing "economic suicide" with its sanctions on Moscow over Ukraine.

Europe would only hurt itself by phasing out Russian energy supplies, the Russian President said, urging state officials to act in an "ill-thought-out" way.

He told an energy meeting that Europe would see higher energy prices and higher inflation as a result of its actions, saying, "Of course, such an economic suicide is a domestic affair of the European countries."

Read more: US sanctions 40 Russian entities, 29 individuals over Ukraine

Russia was hit with extensive sanctions after Putin sent troops to Ukraine on February 24, and Western nations have displayed close coordination in announcing penalties but have moved at a different pace when it came to Russian oil and gas.

Putin demonstrated wishes to redirect supplies to "friendly" countries as nations in Europe were looking to wean themselves off Russian energy.

Putin reiterated that Europe's "chaotic actions" will not only hurt its own economy but will also lead to an increase in revenues from oil and gas for Russia.

"Changes in the oil market are tectonic in nature and doing business as usual, according to the old model, seems unlikely," he said.

"In the new conditions, it is important not only to extract oil, but also to build the entire vertical chain leading to the final consumer," he added, mentioning that the government will help firms change their business model.