Russia's president said Europe was to blame for its energy crisis because of policies that starved the oil and gas industry of investment, and that price caps would exacerbate the situation, as EU states attempted to reach an agreement on how to contain soaring energy costs.
Worries about the security of energy supplies were heightened on Wednesday when a leak on the Druzhba pipeline from Russia cut off oil flow to Germany in Poland.
Poland said the leak was most likely an accident, but it occurred at a time when European Union nations are attempting to wean themselves off their reliance on Russian energy in response to Russia's invasion of Ukraine in February.
The Nord Stream gas pipeline serving Germany is currently shut down following a leak last month that both Russia and the West blamed on sabotage without identifying who was responsible.
President Vladimir Putin called the leaks in the two Nord Stream pipelines connecting Russia and Europe a "act of international terrorism" that deprived people of affordable energy.
Putin stated that while one intact section of the Nord Stream 2 pipeline could still supply gas, it was up to the EU whether or not it wanted the gas. After Russia sent troops into Ukraine, Germany canceled the Nord Stream 2 project.
Putin stated at a Russian energy forum that Russia was not to blame for Europe's exorbitant energy prices.
The impact of efforts to use less Russian energy, as well as sharp cuts in Russian supplies, has been felt across the EU's 27 member states, with gas prices nearly 90% higher than a year ago and fears of rationing and power outages this winter.
PRAGUE CONVERSES
On Wednesday, EU energy ministers met in Prague to try to reach an agreement on new crisis-response measures.
The majority of EU countries agree on the need for a gas price cap, but disagree on how it should be implemented. Some countries, including Germany, Europe's largest gas market, are still opposed, claiming it will suffocate supplies.
Before Wednesday's meeting in the Czech capital, Germany and the Netherlands put forward their own proposals, including a new benchmark price for liquefied natural gas, tougher gas-saving targets, and negotiating lower prices with other suppliers such as Norway.
In neighboring Poland, pipeline operator PERN reported a leak in a section of the Druzhba oil pipeline around 70 kilometers (43 miles) from the central Polish city of Plock on Tuesday evening.
The Druzhba pipeline, named after the Russian word for "friendship," is one of the world's largest, supplying Russian oil to much of central Europe, including Germany, Poland, Belarus, Hungary, Slovakia, the Czech Republic, and Austria.
"Here we can talk about accidental damage," Mateusz Berger, Poland's top official in charge of energy infrastructure, told Reuters by phone.
The PCK Refinery in Schwedt, Germany, said it was still receiving oil deliveries from the Druzhba pipeline, but at a reduced capacity.
WORRIES ABOUT SUPPLY
Analysts across Europe have estimated that the gas supply shortfall will be nearly 15% of average winter demand, and that Germany will need to cut energy consumption by about a fifth, with serious implications for Europe's largest economy, whose industry has relied on abundant, affordable energy supplies.
The energy crisis has had repercussions throughout Europe, as businesses have passed on additional costs, squeezing household budgets.
Governments are also attempting to determine how to fund emergency measures designed to protect customers and smooth out the distortions caused by the price surge.
Portugal, an EU member, plans to invest 3 billion euros ($2.9 billion) in its electricity and natural gas systems next year to reduce prices paid by businesses, the government announced on Wednesday.
In the United Kingdom, the new government proposed a temporary revenue cap on low-carbon electricity generators, which the industry called a "de facto windfall tax" on renewable energy producers.
Rising gas prices in Europe and the United Kingdom have increased the cost of electricity.