BRUSSELS/VLADIVOSTOK Russia, Sept 7 – The European Union proposed a price cap for Russian gas on Wednesday after President Vladimir Putin threatened to cut off all energy supplies if it did so, raising the risk of rationing in some countries. richest countries in the world this winter.
The escalating stalemate could further push sky-high European gas prices, adding to the already eye-watering bills EU governments are paying to stop their energy providers from collapsing and prevent cash-strapped customers from being frozen out in the cold months ahead.
Europe has accused Russia of weaponizing energy supplies in retaliation for Western sanctions imposed on Moscow over its invasion of Ukraine. Russia blames the sanctions for causing gas supply problems, which it attributes to pipeline faults.
As tensions rose, Putin said contracts could be torn up in the event of price caps and warned the West it risked being frozen like the wolf’s tail in the famous Russian fairy tale.
The EU will propose a ceiling on the price of Russian gas
Putin threatens to cut off all energy supplies. Draft law to support businesses, households.
However, the EU plans to impose a price cap on Russian gas as well as a cap on the price paid for electricity from non-gas-powered generators.
On Friday, EU energy ministers are to meet in an extraordinary manner.
“We will propose a price cap for Russian gas… We must reduce the Russian revenues that Putin is using to finance this brutal war in Ukraine,” European Commission President Ursula von der Leyen told reporters.
The Netherlands, which has consistently opposed a gas price cap, would support one targeting Russian gas, a source familiar with the matter told Reuters on Wednesday.