It would be “insane” for Russia to invade Ukraine — but that scenario is “not impossible,” says former Prime Minister of Sweden Carl Bildt.

According to the Russian President, “A large invasion is not likely” but not impossible. Vladimir PutinBildt said in an interview that Ukraine has previously used military force against it. He is currently co-chairing the European Council on Foreign Relations.

CNBC’s he said, “It would be insane.” “Capital Connection”The media will air explosions and photos of refugees fleeing to safety on Thursday.

He predicted that Russia would have a significant impact on society and the economy. People would probably mobilize resources for Ukraine.

Bildt declared that they would be “entering into really unknown territory in terms war, peace and security in Europe.”

“One would expect that the truth of what may happen is starting to sink, into the decision making circles, small and large as in the Kremlin,” said he.

These are rising fears of war between Russia and UkraineIn recent months, Moscow has increased its military presence along the border between these two countries. The U.S., along with other Western countries, has not made much progress in talks. Washington has called for a diplomatic path forward.

The Kremlin has denied it is planning to invade Ukraine, in a repeat of its illegal annexation and occupation of Crimea in 2014.

Russian assets have been under increasing pressure because of the impasse. The impasse has put Russian assets under pressure. MOEX Russia Index had declined more than 11% since the start of the year.

Nord Stream 2 — a contentious pipeline that can carry 55 billion cubic meters of natural gas to Europe every year — has often been raised as a possible piece of leverage against Russia.

The former prime minister of Sweden isn’t optimistic.

CNBC was informed by him that the project cannot be used in negotiations since it will likely only be operational at the end of 2022.

He said that he doesn’t believe it can be used as a bargaining tool. However, he added that he is more concerned about Nord Stream 1 which also has similar transportation capabilities.

According to him, Germany could be put in a difficult situation if Nord Stream 1 is cut.

Europe relies on Russia for around 43% of its gas imports,Eurostat.

Bildt indicated that Europe’s gas supply will soon be under threat in two different scenarios.

If there are fighting or an invasion, the first would be. “It’d be fairly difficult to see that — while the tanks are rolling and shooting on the ground — that the pipes will deliver gas just meters below them,” he said.

If Russia is attempting to respond against Western sanctions, it may be possible for gas flow to be reduced. “The only dangerous, forceful thing they can do then is to stop the gas flow,” he stated.

This would negatively impact Europe. Discussions are ongoing to address this possibility.

Biden’s administration said this week that they are exploring ways to secure energy for allies in Europe if Russia reduces its oil and gas exports.

A top administration official however pointed out that revenue is needed by the Russian economy “at least equally as Europe’s energy supply”.

Putin has no asymmetric advantage. “It’s interdependency,” said the official.

— CNBC’s Amanda Macias and Silvia Amaro contributed to this report.