Europe is working hard on getting their energy from other sources. And once they've done that, they're not going back to Russian gas. In the long term, this is absolutely a loss for Russia.

Germany will not build any new LNG terminals when in a few short years they can just resume buying from the cheapest seller, before the first new terminal has even finished being constructed.

Simultaneously Russia is not stupid enough to completely cut off the gas and trigger a total crisis. They are pulling on the chains but they understand the risk to the relationship just as well as you do. Don't forget all the gas supply shortages to date have been justified in terms of required maintenances and problems due to western sanctions. That's paving a route for resumption of normal relations between both parties at a later date with no loss of face for either party.