EU officials scrap plans to stifle war funds in Ukraine with price cap on Russian gas

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EU officials scrap plans to stifle war funds in Ukraine with price cap on Russian gas

  • Last night, Eurocrats dumped plans for a proposed price cap on Russian gas
  • Putin threatened to tear up existing contracts and turn off the tap to Europe
  • Russia now supplies less than 10% of EU gas imports before it was 4%

Eurocrats last night scrapped plans to choke funds for Vladimir Putin’s war in Ukraine when they dumped a proposed price cap on Russian gas.

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European Commission officials last week informed that EU governments would support a blueprint to prevent Moscow from arming its energy supply. But the bloc remains divided over the idea, which is supported by France and Poland but opposed in countries such as Austria, Germany, Hungary and Slovakia.

It forced Commission chief Ursula von der Leyen to remove the price cap in favor of a windfall tax on the profits of energy giants who benefit from higher prices she believes would bring in £120 billion. “It is wrong to receive extraordinary record profits from profiting from war and on the backs of consumers,” she said.

Ms von der Leyen also said the EU executive would prepare new proposals for wartime electricity rationing. Brussels says the money raised by the windfall tax will help households and businesses across the continent struggling with inflation and rising bills.

But it raises the prospect that some EU governments will continue to funnel money into the Kremlin’s coffers. The bloc has paid £78 billion for Russian fossil fuels since the start of the war, experts say.

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However, Russia now supplies less than 10 percent of the EU’s gas imports. Before the invasion it was 40 percent.

Romanian MEP Christian Terhes said: ‘Eurocrats are playing Russian roulette with Ukrainian lives.’

Putin threatened to tear up existing contracts and turn off the tap to Europe completely after the price ceiling plan was first announced.

State energy giant Gazprom went so far as to broadcast a bizarre propaganda video featuring snowy European capitals, including London, warning of a possible freeze this winter.

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