EU proposes capping the price of Russian Gas
The European Union’s executive body has proposed capping the price of Russian gas.
Energy prices have soared in the wake of Russia’s invasion of Ukraine, forcing the EU’s 27 states into action.
“We must cut Russia’s revenues which Putin uses to finance this atrocious war,” said European Commission chief Ursula von der Leyen.
But Mr Putin said Moscow would react to a cap by halting supplies completely.
“We will not supply gas, oil, coal, heating oil – we will not supply anything,” he said, if it went against Russia’s interests.
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European leaders have accused Moscow of “weaponising” its gas exports in response to Western sanctions on Russian individuals and businesses.
While the Kremlin denies that is the case, the big Nord Stream 1 pipeline into northern Germany has been shut indefinitely, with Moscow directly blaming sanctions.
Last week, the G7 group of nations – announced a price cap for Russian oil – a move it said would reduce both Moscow’s revenue for its Ukraine invasion, and inflation in the West.
Finnish researchers recently estimated that Russia has made €158bn (£136bn) from surging fossil fuel prices during the six-month invasion – with EU imports accounting for more than half of that.
Speaking to an economics forum in the far eastern city of Vladivostok on Wednesday, Russia’s leader condemned sanctions as economic aggression, and a “fever” posing a threat to the entire world.
The quality of life for Europeans was being sacrificed while poorer countries were losing access to food, he argued: “Now we are seeing how production and jobs in Europe are closing one after another.”
Although he acknowledged inflation in Russia was rising, he minimised the effect that sanctions were having on Russian companies: “I am sure that we have not lost anything and we will not lose anything.”
Russian companies have struggled to source much-needed imported parts. But Mr Putin asserted that confidence in the dollar, euro and pound was being lost before people’s eyes – while Russia was emerging from the war with its sovereignty strengthened.
BBC/Hauwa Abu
