Putin calls EU gas price cap plan ‘stupid’ as costs soar

  • Vladimir Putin called the suggestion that Europe should impose caps on petrol prices “stupid”.
  • He said the plan would only lead to higher prices, in a speech to the Eastern Economic Forum.
  • Putin also scoffed at Western sanctions, saying Russia had no problem selling its energy globally.

Russian President Vladimir Putin has torn up Europe’s plans to impose a price cap on Russian natural gas as Western countries try to rein in soaring energy costs.

The European Commission’s energy agency recently urged EU member countries to put in place “emergency wholesale price caps” to help households and businesses struggling to pay their energy bills. The cap would set a limit on what local buyers can wholesale pay for Russian gas imports.

Speaking at the Eastern Economic Forum in Vladivostok, Russia, Putin called it “stupid”, adding that it would lead to higher prices, according to Reuters.

European natural gas prices have risen sharply since Russia invaded Ukraine in February, as the country cut off gas flows to the continent in response to Western sanctions imposed on them.

On the day Russia’s Gazprom halted gas flows through its Nord Steam 1 pipeline to Europe, prices jumped 36%.

Dutch TTF futures, the benchmark price for natural gas in Europe, last fell 3% to $232.45 as governments step up efforts to cut costs through price caps.

Natural gas prices in Europe have jumped more than 300% this year, reaching a record high above $340 per megawatt hour in August.

In his speech, Putin said the country had “no problem” selling its vast energy resources to the world, mocking the intended effect of sanctions and boycotts.

Selling its discounted oil and gas to countries like India and China has put Russia on track to generate $285 billion in revenue this year, according to Bloomberg Economics.