EU to propose price cap on Russian gas

STORY: The European Commission will propose a price cap on Russian gas.

That was the message from from Commission President Ursula von der Leyen on Wednesday (September 7).

Some EU countries are wary over the move, as they fear it could cost them the already lower supply they are receiving from Moscow.

Russian President Vladimir Putin warned Wednesday his country would stop supplying gas and oil if price caps were imposed.

But Von der Leyen says Europe must not be cowed:

"We all know that our sanctions are deeply grinding into the Russian economy with a heavy negative impact but Putin is partially buffering through fossil fuel revenues. So here the objective is we must cut Russia's revenues, which Putin uses to finance his atrocious war in Ukraine."

Von der Leyen also talked of other measures to cope with the energy crisis.

That included proposals to lower soaring power prices, partly by capping the amount paid for energy from renewables and other non-gas sources:

"It is now time for the consumers to benefit from the low costs of low carbon sources like for example the renewables. We will propose to rechannel these unexpected profits. We channel them to the member states so that the member states can support the vulnerable households and vulnerable companies.”

Renewable and nuclear energy hasn't been affected by the gas price surge, but their operators have raked in profits as wholesale prices for energy jumped.

Von der Leyen said oil and gas firms that have posted huge jumps in profits would also be required to make a "solidarity contribution."

Energy ministers from the bloc will discuss the proposals at an emergency meeting on Friday (September 9).