Russian oil giant Gazprom over the weekend threatened to cut off gas supplies to Europe if the European Union imposes price caps, Reuters reports.
European nations, which heavily rely on Russian energy imports, have discussed setting a price cap on Russian oil and gas to reduce their financial support of Russia’s invasion of Ukraine.
The European Commission is expected to propose a “dynamic” price cap this week. The proposal is expected to be “far short” of an EU-wide price cap that 15 member states have urged. Germany and other countries have warned that caps could lead to gas shortages.
"As a result of falling gas prices, this proposal shows that the appetite for ambitious reform, such as a price cap, is fading," Georg Zachmann, an energy expert at think tank Bruegel, told Reuters.
The proposal could include joint gas purchases intended to avoid disparities among member states.
Gazprom CEO Alexei Miller threatened to cut off gas supplies if the EU imposes a price cap.
"Such a one-sided decision is of course a violation of existing contracts, which would lead to a termination of supplies," Miller said.
Russian President Vladimir Putin last month also threatened to cut off energy supplies in response to price caps.
The EU previously imposed an embargo on Russian oil and coal except for imports that are carried through pipelines.
Gas prices are up nearly 90% compared to last year.
Nord Stream repairs:
Gazprom operates the Nord Stream pipelines, which were taken offline after an alleged act of sabotage.
“Experts say that in order to restore operations after such a terrorist act, a very large portion of the pipe needs to be cut, at a great distance, and in fact build a new section on this section,” Miller told Russian state TV.
“And in order to restore integrity, it must be raised, this pipe. And you understand, it is one thing when the pipe is hollow, yes, and another thing when it is filled with seawater for hundreds of kilometers,” Miller added.