London Daily

Focus on the big picture.
Sunday, Jul 19, 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
Brothers Andrew and Tristan Tate Who Turned "Toxic Masculinity" Into a Brand Arrested in Miami as Britain Seeks Their Extradition
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
Key Trends to Watch
Financial Conduct Authority Warns Cloud and Digital Risks Are Becoming a Financial Priority
Jeffrey Donaldson Appeals Sexual Abuse Conviction as Democratic Unionist Party Opens Review
Welsh Health Authorities Launch Emergency Meningitis Vaccination Programme for Students
Scottish Business Activity Falls for Third Month as Companies Face Rising Costs
Bank of England Regulators Demand Better Access to Digital Banking Services
United Kingdom Cuts Bilateral Aid to Several African Countries by Up to Ninety Per Cent
United Kingdom Introduces Tougher Deportation Rules After Rochdale Exploitation Scandal
NHS England Launches Wearable Technology Plan to Reduce Sepsis Deaths
Amazon Web Services Billing Error Sends Trillion-Dollar Invoices to British Companies
Bank of England Takes Direct Regulatory Role Over Major Global Cloud Providers
Extreme Summer Heat Drives Record Fire Risk and Rising Deaths Across Britain
United Kingdom Nationalisation of British Steel Sparks Diplomatic Dispute With China
United Kingdom Economy Shows Weak Growth Ahead of Major Autumn Budget
Andy Burnham Set to Become United Kingdom Prime Minister After Labour Leadership Victory
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
Energy Risk, Uneven Growth and the New Geography of Global Capital
The AI Race Enters Its Infrastructure Era
Security and resilience remain long-term national priorities
Britain balances growth ambitions with public finance pressures
Regional devolution becomes a defining theme of the next Labour era
Industrial strategy returns to the centre of British economic policy
Political Instability Remains a Challenge for UK Investment Confidence
Brexit Economic Debate Continues as Public Concerns Over Long-Term Impact Remain
UK Climate Risks Rise as Met Office Warns Extreme Weather Is Becoming More Common
Housing Shortages and Regional Inequality Become Key Priorities Under Incoming Labour Leadership
National Health Service Reform Remains One of Britain’s Biggest Political Challenges
Bank of England Remains at Centre of UK Economic Debate Over Inflation and Growth
UK Economy Shows Recovery Signs but Households and Businesses Remain Under Pressure
Britain Deepens European Defence Cooperation as NATO Allies Seek Stronger Security Capabilities
United Kingdom Expands Sanctions Against Russian Cyber Networks Over Security Threats
UK Industrial Strategy Faces Test After Government Takes Control of British Steel
British Businesses Seek Policy Clarity as Andy Burnham Prepares to Lead Labour Government
Andy Burnham’s Labour Leadership Signals Major Shift Toward Regional Power and Devolution
British Steel Nationalisation Creates New UK-China Tensions Over Control of Strategic Industry
For 36 Years, He Scammed About 300 Luxury Hotels — Until He Was Caught
England's World Cup Exit Expected to Cost Hospitality and Retail £334 Million
Former ICC Prosecutor Aide Speaks Publicly About Allegations Against Karim Khan
Opposition Raises Questions Over June Heatwave Power Grid Pressures
Mastercard Explores Sale of Majority Stake in UK Payments Operator Vocalink
Boeing Forecasts Global Commercial Aircraft Fleet Will Double by 2045
London GP Surgeries Receive £18 Million to Expand Primary Care Capacity
Health Advisers Recommend Nationwide Meningitis B Vaccination for Teenagers
OECD Warns UK Economy Faces Slower Growth and Weak Productivity
×