European natural gas and power prices dropped after Russia said some troops are starting to return to their bases and President Vladimir Putin reassured the German chancellor on energy supplies.

Units of the Western and Southern military districts are already loading equipment onto road and rail transport after completing their drills, Defense Ministry spokesman Igor Konashenkov said in a video posted on its website. Russia has been a reliable energy supplier “for decades,” Putin reiterated at a meeting in Moscow with German Chancellor Olaf Scholz.

Benchmark European gas prices fell as much as 15%. The market has responded to every change of tone in the talks between Russia and the West over Ukraine. That has contributed to fluctuating prices, even as Europe’s energy crunch eased in recent weeks with an influx of liquefied natural gas and milder temperatures.

Gas prices fell below 70 euros a megawatt-hour for the first time in almost a month, before trading 12% lower at 71 euros by 4:24 p.m. in Amsterdam. The U.K. equivalent dropped as much as 14% to 166.8 pence per therm. Germany’s benchmark month-ahead power contract declined as much as 10% to 151 euros per megawatt-hour.

Russia’s Foreign Minister Sergei Lavrov said that Russia is confident that diplomatic efforts aimed at resolving a tense stand-off with the U.S. and Europe will succeed. On Monday, Putin countered U.S. warnings that Russia may invade Ukraine within days. Moscow has repeatedly denied any such plans.

Still, German Foreign Minister Annalena Baerbock joined a chorus of Western voices expressing skepticism over Moscow’s statement that it was beginning to pull back troops from the Ukrainian border.

“Every step of de-escalation would be reason for hope. But so far there are only words, which now have to be followed by actions,” she said on Tuesday.

Ukrainian President Volodymyr Zelenskiy briefly spooked markets with predictions of a Russian invasion, which was later explained as a tongue-in-cheek quip. Mykhailo Podolyak, an adviser to Zelenskiy’s chief of staff, said the country remained skeptical of “concrete dates” being cited for a potential invasion.

Russian gas entering Slovakia through a key route crossing Ukraine is also gradually recovering after bottoming out over the weekend. However, flows through the Yamal-Europe line have been halted for more than eight weeks.

Energy prices also fell back on Tuesday following forecasts of mild weather. Above-average temperatures are seen across most of mainland Europe and the U.K. next week, Maxar said in a report. Stronger winds are also set to ease electricity prices in the coming days, with near-record German wind power output predicted on Wednesday.

However, arrivals of liquefied natural gas, which have helped ease the crunch, are showing signs of slowing down after reaching a record high in January. Japan, South Korea and Taiwan, the top LNG importers, are snapping up shipments in an effort to restock supplies drained by winter demand, leaving less fuel available for Europe.