Europe was facing a difficult and unpredictable winter when it came to its energy supplies.
Russian President Vladimir Putin said on Wednesday that he was going to stop all supplies.
The region is vulnerable as it tries to replenish energy storage ahead of the cold months due to the fact that Russia has stopped gas supplies.
After the EU proposed price caps on Russian energy imports, Putin told business leaders that Russia could still rip up supply contracts.
Will there be political decisions that conflict with the contract? We won't fulfill them At the Eastern Economic Forum in Russia's far east, Putin said that they wouldn't supply anything if it hurt their interests.
Putin said they wouldn't supply gas, oil, coal, heating oil.
As in the famous Russian fairy tale, we would allow the wolf's tail to freeze.
The story involves a cunning fox who made a stupid wolf catch fish by putting his tail into an ice hole.
After the ice hole froze trapping the wolf in the ice, the fox would jump around and say "freeze, freeze, the wolf's tail" The men from the village beat the wolf for all the bad things he did to them. Pravda said that the wolf's tail was left in the ice hole.
There is a risk of energy rationing in Europe this winter. The EU wants its members to reduce their gas consumption by 15% in the fall and winter but that may not be enough to make up for restrictions on gas use.
Measures have been announced by a number of European governments. Western nations want to put pressure on Russia's energy revenues by proposing price caps on Russian oil and gas.
Ursula von der Leyen, president of the European Commission, said the situation facing Europe is extraordinary because Russia is unreliable.
The Commission would put forward immediate measures to help consumers, including a mandatory target for reducing electricity use at peak hours, a cap on revenues of companies producing electricity with low costs, and other plans to share the burden of energy price rises.
Low carbon energy sources are making unexpected revenues. Von der Leyen said in a statement that it is time for consumers to benefit from the low cost of low carbon energy sources.
The oil and gas companies have made a lot of money. Solidarity contributions will be made for fossil fuel companies. All energy sources have a role to play in addressing this crisis.
Von der Leyen proposed a cap on Russian gas and support for energy utility companies to deal with the markets'unpredictability. The goal here is very clear. Russia's revenues are used to finance the war against Ukraine.
Around 40% of the EU's gas came from Russia at the start of the war. She said that the level had been reduced to 9%.
The Commission's proposals will be discussed by the EU energy ministers.
All Rights Reserved © 2024
