Russia has warned against capping energy prices. But Europe is thrashing out the details regardless

European Union vigor ministers connected Friday gathered successful Brussels for exigency talks connected however to support households and businesses from runaway state and energy prices up of winter.

European Commission President Ursula von der Leyen sought to laic the groundwork for Friday's gathering with a five-point plan. This includes a terms headdress connected Russian gas, a windfall taxation connected fossil substance profits, a mandatory people for reducing energy usage and exigency recognition lines for powerfulness companies.

Russian President Vladimir Putin responded to the proposals by threatening to rip up existing proviso contracts if a headdress connected Russian vigor exports is imposed, informing that helium was prepared to fto Europe "freeze" during the colder months.

Russian Foreign Ministry spokeswoman Maria Zakharova connected Friday reportedly warned that the West failed to recognize however vigor terms caps could interaction their ain countries. "The corporate West does not understand: the instauration of a headdress connected prices for Russian vigor resources volition pb to a slippery level nether its ain feet," Zakharova said, according to Reuters.

It is not expected that EU subordinate states volition scope a determination connected Friday regarding the projected argumentation ideas.

The 27-nation bloc has endured a crisp driblet successful state exports from Russia, traditionally its largest vigor supplier, amid the standoff implicit the Kremlin's onslaught successful Ukraine.

Imported Russian state to Europe currently stands astatine 9%, representing a important autumn from astir 40% earlier the war.

The bitter vigor quality betwixt Brussels and Moscow has precocious seen Russia completely halt state flows via a large proviso way to Europe, exacerbating the hazard of recession and a wintertime shortage.

Speaking successful Brussels up of the talks, EU Energy Commissioner Kadri Simson told reporters that Friday's gathering was indispensable to supply governments with the close tools to code the deepening vigor crisis.

"This is not lone astir prices," Simson said. "It is besides a situation connected the facet of the information of supply."

Energy bills person skyrocketed since Russia invaded Ukraine successful precocious February and the West responded with a barrage of punitive economical measures.

"We are facing an bonzer situation, not lone due to the fact that Russia is an unreliable supplier, arsenic we person witnessed implicit the past days, weeks, months, but besides due to the fact that Russia is actively manipulating the state market," von der Leyen said successful a connection connected Wednesday.

"I americium profoundly convinced that with our unity, our determination, our solidarity, we volition prevail," she added.

EU lawmakers person repeatedly accused Russia of weaponizing vigor exports to thrust up commodity prices and sow uncertainty crossed the bloc. Moscow denies utilizing vigor arsenic a weapon.

Last week, Russia's state-owned vigor elephantine Gazprom cited an lipid leak for the indefinite shutdown of the Nord Stream 1 state pipeline, which connects Russia to Germany via the Baltic Sea.

However, the Kremlin has since said that the resumption of state supplies to Europe is wholly babelike connected the EU lifting its economical sanctions against Moscow.

"I deliberation what this vigor situation has shown is that we request renewables and the greenish vigor modulation faster than ever," Deepa Venkateswaran, elder expert of European Utilities astatine Bernstein, told CNBC's "Squawk Box Europe" connected Friday.

"At this point, renewables person ne'er ever been [this much] cheaper than wholesale prices, which are driven by state and fossil substance prices," she added.

Speaking alongside French Finance Minister Bruno Le Maire up of a abstracted gathering of EU concern ministers successful the Czech Republic, German Finance Minister Christian Lindner called for solidarity crossed the bloc successful the hunt for solutions to assistance households and businesses.

"It is simply a awesome that France and Germany starts this gathering together, it is simply a awesome that we are lasting enarthrosis to enarthrosis not lone present but policy-wise arsenic well," Linder said, jovially nudging France's Le Maire.

Linder said helium would invitation each EU subordinate states to enactment the thought of a terms headdress connected Russian oil.

The G-7 economical powers issued a associated connection past week backing the initiative, though vigor analysts stay highly skeptical astir the integrity of the proposal.

The Kremlin has warned it would halt selling lipid to countries that enforce terms caps connected Russian vigor exports.

"We privation to debar higher revenues for Russia and we privation to support the terms level for our economies and 1 favorable means is the lipid terms cap. It is much effectual erstwhile much subordinate states of the European Union enactment this idea," Lindner said.