Conflicts & War

EU to propose price cap on Russian gas

Brussels, Sep 7 (EFE).- Brussels will propose a price cap on Russian gas as electricity prices have reached “astronomic” prices across the bloc, president of the European Commission, Ursula von der Leyen, said on Wednesday.

“We will propose a cap on Russian gas,” von der Leyen told a press conference in Brussels.

“The objective here is very clear. We must cut Russia’s revenues which Putin uses to finance this atrocious war against Ukraine”.

The German politician said the EU was facing an “extraordinary situation” as a result of Russia’s invasion of Ukraine and increasing energy prices.

“Russia is an unreliable supplier and is manipulating our energy markets. We are confronted with astronomic electricity prices for households and companies and with enormous market volatility,” she said.

Following the Kremlin’s invasion of Ukraine in late February, the EU has made efforts to diversify its gas imports to reduce its Russian energy dependence.

“At the beginning of the war, Russia’s pipeline gas was 40% of all imported gas. Today it is now down to only 9% of our gas imports,” von der Leyen said.

Alongside a price cap on Russian gas, the Commission chief announced a series of measures to further reduce energy consumption ahead of winter, including a mandatory target for reducing electricity use at peak hours and a cap on revenues of companies producing electricity with low costs.

The bloc will also propose a “solidarity contribution” to fossil fuel companies as well as support for energy suppliers to cope with the volatility of the markets.

“These are tough times. But I am convinced that Europeans have the economic strength, the political will, and unity to keep the upper hand,” von der Leyen said.

Earlier on Wednesday, president Vladimir Putin warned Russia will cut its gas, oil and coal supply to the bloc if the EU implements a price cap.

“Russia will supply absolutely nothing if it contradicts our interests, in this case economic interests, we will supply neither gas, nor oil, nor coal,” the Kremlin leader said at a plenary session at the 7th Eastern Economic Forum (EEF) in Vladivostok, the economic hub of the Russian Far East. EFE


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