Analysts at Goldman Sachs said Russia could drastically cut natural gas supplies to Europe in response to the EU's oil import ban, exacerbating the continent's economic downturn.

The EU has agreed on a plan to ban most Russian oil imports, with officials expecting a 90% supply cut by the end of the year.

Gazprom has said it has stopped deliveries of natural gas to the Dutch company GasTerra and will stop deliveries to two other companies under contracts with Germany due to their refusal to pay in rubles.

Goldman analysts led by Alain Durret and Filippo Taddei said the chances of a further cut in natural gas supplies have increased as Russia tries to retaliate for the oil embargo. 

Supply cuts could further undermine the European economy, which many analysts expect will slow sharply next year due to high inflation and the aftermath of the war in Ukraine.

In 2020, the EU used natural gas for 24% of its energy mix, according to Eurostat. In that year, 43% of EU natural gas imports came from Russia.