Arab Press

بالشعب و للشعب
Monday, Jul 07, 2025

EU plans cap on Russian gas in retaliation for Ukraine war

EU plans cap on Russian gas in retaliation for Ukraine war

Days after Russia switched off the main Nord Stream 1 pipeline, the EU is planning some retaliation of its own, but admits consumers and businesses are facing "astronomic prices".

The European Union appears set for a new showdown with Russia over gas supplies.

The bloc has revealed plans for a price cap on Russian gas imports in retaliation for the war in Ukraine and measures to help member states cope with the energy squeeze.

Ursula von der Leyen, the president of the European Commission, laid out five proposals on Wednesday, hours after Russia's leader threatened to turn off the taps to any Western nations moving to impose price caps on his country's energy.

She said Russia had become an "unreliable supplier" after state-run Gazprom's decision to turn off the taps on the major Nord Stream 1 pipeline indefinitely last week, adding that the EU's reliance on Russian gas had fallen significantly since the invasion and stocks were back at 82% across the bloc.

One of the other measures however betrayed the perilous position the bloc continues to face ahead of winter.

Ms Von der Leyen proposed a mandatory cut in electricity use across the EU to preserve power by 10% a month based on a five-year average and by a further 5% during times of peak price periods.

She also planned a cap on the revenue of non-gas fuelled generators - bolstered by record raw energy costs - to re-channel their "unexpected profits" into measures that support households and companies.

Ursula von der Leyen said consumers across the EU were facing 'astronomic' bills


A windfall tax on fossil fuel firms was also on the cards, she said, along with aid for utility providers struggling under the weight of wholesale prices.

The plans, which will have to be agreed by member states, may face opposition.

Some EU countries are wary of capping Russian gas prices in case that costs them the dwindling supply they still receive from Moscow.

It follows confirmation that the UK is planning to bring down its own energy bills through a taxpayer-funded bailout. The details are expected this week.

Ms Von der Leyen explained that the planned cap on wholesale prices from Russia was now possible after the bloc had eased its reliance on Russian energy.

"We have increased our preparedness and weakened Russia's grip on our energy supply through demand reduction - which allowed our common storages to be at 82%," she said.

"Through diversification we have increased deliveries of LNG or pipeline gas from the US, Norway, Algeria, Azerbaijan, and others. For example Norway is now delivering more gas to the EU than Russia."

The UK has also been pumping record volumes to the EU via interconnectors for months as part of EU efforts to bolster storage.

Ms Von der Leyen said Russian gas accounted for 9% of imports, down from 40% in February before the invasion of Ukraine.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
×