“An attempt to limit prices by administrative means is just ravings, it’s sheer nonsense,” Vladimir Putin said. Source: Wikimedia Commons.
The European Union’s executive body has proposed a cap to the price of Russian gas, as Vladimir Putin threatens to halt supplies completely.
“We must cut Russia’s revenues which Putin uses to finance this atrocious war,” said European Commission President, Ursula von der Leyen.
She said Europe has weakened the Russian grip on its gas requirements and that gas storage is now at 82 per cent.
Russia accounted for 40 per cent of the EU’s imported gas before the Ukraine invasion, but today von der Leyen said that is now down to 9 per cent.
The Russian president dismissed the plans for a cap on Russian oil and gas prices at an annual economic forum in port city of Vladivostok.
“An attempt to limit prices by administrative means is just ravings, it’s sheer nonsense,” Putin said.
“If they try to implement that dumb decision, it will entail nothing good for those who will make it.”
He said this move by the EU would breach existing contracts and Russia would respond.
“Will they make political decisions violating the contracts?
“In that case, we will just halt supplies if it contradicts our economic interests. We won’t supply any gas, oil, diesel oil or coal.”
Russia has been accused of weaponising its gas exports in a response to the Western sanctions which the Kremlin denies.
The Commission has said countries can keep buying Russian pipeline gas, which it said cannot be diverted easily to other markets, as long as the price did not exceed an agreed threshold.
The Commission acknowledged Russia could retaliate by cutting supplies further in a note outlining von der Leyen’s plans, that said “significant disruptions are already taking place without a price cap”.
It suggested setting the price above production costs but below current market prices to incentivise Russia to keep selling to Europe.
In the war in Ukraine, Russia is currently facing a Ukrainian counter-offensive in the south and east and has been forced back from areas around Kyiv and the north.
Valeriy Zaluzhnyi, the Ukrainian army’s commander in chief, has also claimed responsibility for the series of strikes on Russia air bases on the Crimea Peninsula.
