Gazprom CEO Alexei Miller has stated that the EU imposing a price cap on Russian natural gas exports would result in the suspension of supplies

Miller told Russian broadcaster Rossiya 1: “We are guided by the contracts that have been signed. Of course, such a unilateral decision is a violation of the essential terms of the contract, which entails the termination of supplies.”

In response to Russia’s invasion of Ukraine, the EU and the G7 nations recently decided to impose a price cap on Russian oil and gas. This would include an exemption for countries like Hungary that are dependent on Russian oil through pipelines. However, progress in implementing this cap has been slow. 

In a speech, Miller said, “A clear and explicit political answer is required from both the EU and Germany, confirming that they are interested in restoring the damaged strings and want them to be restored.

“We created this new [expensive] offshore trunkline export route for Europe and Germany as our buyers, our clients.”

President Vladimir Putin threatened to cut off oil and gas supplies if price caps were enforced in September. He warned Western countries that they would be “frozen” like a wolf’s tail in a popular Russian fairy tale, according to Reuters

Hungarian Foreign Minister Peter Szijjarto also warned last month that a proposed price cap would force Moscow to cut off European supplies.

This year, the volume of Russian gas deliveries to Europe has fallen significantly, as the EU sought alternatives to oil and gas sources. 

According to the International Energy Agency ‘s monthly report, Russian oil exports fell by 230,000 barrels per day (bpd) in September to 7.5Mbpd. Russian oil exports dropped nearly 4% in September as European supplies fell ahead of EU sanctions.

Gazprom stopped gas flows via Nord Stream 1 pipeline in September, citing maintenance work. European nations expected the Nord Stream 1 pipeline to reopen this week. On the other hand, Russia unexpectedly announced the suspension of supplies, alleging an oil leak in a turbine. 

In late September, European countries detected “unexplained leaks” in two Russian gas pipelines under the Baltic sea near Sweden and Denmark

Polish pipeline operator PERN said on October 12 that it had discovered a leak in a Polish oil pipeline. The leak occurred along a primary route that delivers Russian crude oil to Germany.

An unnamed EU diplomat told Reuters said: “Impatience is growing with member states. So we changed gears and put everything being floated on the table. It is a way of putting pressure on the Commission to come up with the most concrete possible proposals.”