London Daily

Focus on the big picture.
Sunday, Aug 02, 2026

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

0:00
0:00
Close
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×