The EU on Wednesday said it will propose a price cap on Russian gas despite explicit warnings from Moscow that such a move would result in Russia cutting off all energy supplies to Europe.
“We will propose a price cap on Russian gas,” European Commission President Ursula von der Leyen. “We must cut Russia’s revenues which Putin uses to finance this atrocious war in Ukraine.”
The price cap plan is expected to be discussed on Friday during a meeting of EU energy ministers. But not all members are on board, as a minister from the Czech Republic said the issue should be taken off the agenda for Friday’s meaning.
The talk of a price cap comes as the EU is bracing for a harsh winter due to the soaring energy prices Europe is facing thanks to the US-led sanctions campaign against Russia. The EU energy ministers are set to discuss other measures to save energy, including forced electricity cuts during peak hours.
Russian President Vladimir Putin made clear on Wednesday that if the EU tries to implement a price cap on Russian gas, it will be cut off from Russian supplies. “We won’t be supplying anything if it runs counter to our interests,” he said. “Those who are imposing whatsoever on us are not in a position to tell us what they want. Let them think about it.”
Russia has also warned it will retaliate against a US-led push to implement a price cap on Russian oil that has been agreed on by the G7. If Russia retaliates by cutting oil production, it could send global oil prices skyrocketing.