Fear of Russian reprisals has countries lining up to oppose the EU's plan to target Moscow with a price cap on gas
EU countries fear a Russian gas price cap will push Moscow to cut supplies to Europe completely.
At least 10 countries propose the cap to apply to all suppliers, as EU ministers meet Friday.
Putin said a cap was stupid and threatened to cut off all energy exports to those abiding by it.
Europe wants to set a limit on the price paid for Russia's natural gas, but the proposal is facing pushback from countries worried that Moscow will hit back by completely cutting off all supplies of the fuel.
At least 10 of the European Union's 27 members want the wholesale price cap to be placed on all suppliers of gas via pipelines, not just on Russia, according to a Financial Times report Friday. They include Poland, Greece and Italy, per the FT.
They're concerned that President Vladimir Putin could completely shut down all gas deliveries to Europe in retaliation for the EU singling out Russia in the plan.
"Quite frankly, the Russians will probably retaliate on this," the chief energy adviser to the Greek leader told the FT.
Meanwhile, the foreign minister from Hungary — which gets the bulk of its gas and oil from Russia — warned that targeting Moscow would lead to a swift response.
"If price restrictions were to be imposed exclusively on Russian gas, that would evidently lead to an immediate cut-off in Russian gas supplies. It does not take a Nobel Prize to recognise that," Peter Szijjarto said in a Facebook video.
The headwinds for the proposal come as EU ministers hold an emergency meeting Friday to discuss the energy crisis gripping Europe, after Russia indefinitely halted the supply of gas via the key Nord Stream 1 pipeline. They are likely to touch on the plan only briefly, per the FT.
The proposed cap on gas prices is part of an EU package to provide relief to households and businesses from soaring energy costs and to secure fuel supplies before demand rises in winter.
European natural gas prices have risen steeply since Russia's invasion of Ukraine in February, as the country cut off gas flows to the continent in response to Western sanctions imposed on them.
Dutch TTF futures have since pulled back, and were down about 4% at just over 211 euros ($212) as governments step up their efforts to reduce costs through price caps. They hit a record high above 340 euros per megawatt hour in August.
Given those cost pressures, Belgium wants a dynamic EU-wide price cap on exchange-traded gas linked to Asian markets, its energy minister told Reuters ahead of the meeting.
"Our intention first and foremost is to bring prices down. A cap on only Russian gas won't bring prices down," Tinne van der Straeten said, per Reuters. "A cap on just Russian gas is purely political."
Putin on Wednesday criticized the EU plan, calling it a "stupidity" and saying it would only lead to higher prices. At the same time, the Russian leader threatened to cut off any existing buyers who went along with Western price caps on its energy exports.
"Will there be any political decisions that contradict the contracts? Yes, we just won't fulfil them. We will not supply anything at all if it contradicts our interests," Putin said.
"We will not supply gas, oil, coal, heating oil — we will not supply anything."
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