EU's top executive backs price cap on Russian pipeline gas

European Union's top executive said Friday that bloc's electricity market “is longer operating” amid Ukraine war, and proposed a price cap on Russian pipeline gas.

European Commission President Ursula von der Leyen blamed Russian President Vlimir Putin's war against Ukraine for energy crisis and dramatic rise in gas and electricity prices.

She said Europe's priority is to save energy because reserves are scarce, although 27-nation bloc has alrey reached its goal of filling gas stor to 80% of capacity ahe of winter months. target date was v. 1.

“We h imagined this would take two more months," she said in a speech in German town of Murnau. “We have worked hard to end our dependency on Russian gas, turning inste to or suppliers. As a result, rway w delivers more gas to Europe than Russia. Furrmore, U.S. is supplying Europe with considerable volumes of liquid gas.” Natural gas is used to power industry, heat homes and offices, and generate electricity.

Russian energy giant Gazprom said Friday that it can't resume natural gas supplies through a major pipeline to Germany for w because of what it said was a need for urgent maintenance work. anuncement came just hours before Gazprom was due to recommence deliveries after a three-day stopp.

Gazprom started cutting supplies through rd Stream 1 pipeline in mid-June and Russia has reduced gas deliveries to several European countries which have sided with Ukraine in war.

“We see that electricity market is longer operating because it is being severely disrupted by Putin's manipulation," von der Leyen said ahe of a meeting next week in Brussels of EU energy ministers. European Commission is also set to present a pack of detailed measures later this month.

To tackle price crisis, von der Leyen said she firmly believes that “it is w time for a price cap on Russian pipeline gas exported to Europe," and proposed to decouple electricity from gas prices.

Even before Russia started its war against Ukraine, many EU member states h been calling for a thorough and structural reform of bloc's energy market because y believe that influence of gas in setting wholesale electricity prices is disproportionate.

“Of course, we will also talk about need to look at electricity market design in medium term, i.e. decoupling, for example, price of gas from general electricity pricing and — most important issue today, tomorrow and beyond — massive investments in renewable energies," von der Leyen said.

With energy bills skyrocketing, he of EU's executive branch also proposed that some of windfall profits me by electricity producers should be used to support “low-income earners and vulnerable businesses in se times of expensive electricity."