Putin blames Europe for energy crisis as EU works on price cap

• Germans, Dutch try to break EU impasse
• Putin says Russia not to blame for high energy prices
• Oil pipe leak in Poland seen as accident
• Britain acts to curb gains of low-carbon producers

Russia's president said Europe was to blame for its energy crisis with policies that starved the oil and gas industry of investment and said price caps would make it worse, as EU states tried to forge a deal on ways to contain soaring energy costs.

Worries about the security of energy supplies were heightened on Wednesday when a leak in Poland on the Druzhba pipeline from Russia reduced the flow of oil to Germany.

Poland said the leak was probably caused by an accident but it came as European Union nations are seeking to wean themselves off a reliance on Russian energy in response to the invasion of Ukraine in February.

The Nord Stream gas link that serves Germany is currently out of action after a leak last month that both Russia and the West have blamed on sabotage, without identifying who was behind it.

President Vladimir Putin said the leaks in the two Nord Stream pipelines running from Russia to Europe were an "act of international terrorism" and about depriving people of cheap energy.

Putin said gas could still be supplied by one intact part of the Nord Stream 2 pipeline but it was up to the EU whether or not it wanted the gas. Germany cancelled the Nord Stream 2 project after Russia sent troops into Ukraine.

Speaking at an energy forum in Russia, Putin said Russia was not to blame for the sky-high energy prices in Europe.

The impact of efforts to use less Russian energy, plus steep cuts in supplies from Russia, have been felt across the 27-nation EU, with gas prices almost 90% higher than a year ago and fears of rationing and power cuts over the coming winter.

PRAGUE TALKS

EU energy ministers were meeting in Prague on Wednesday to try to agree new measures to tackle the crisis.

Most EU countries say they want a gas price cap, but disagree on its design. Some countries, including Germany, Europe's biggest gas market, remain opposed, arguing it risks choking off supplies.

Germany and the Netherlands put forward their own proposals before Wednesday's meeting in the Czech capital - suggesting 10 "no-regret" EU measures, including a new benchmark price for liquefied natural gas, tougher targets to save gas, and negotiating lower prices with other suppliers, such as Norway.

In neighbouring Poland, pipeline operator PERN said a leak was detected on Tuesday evening in a section of the Druzhba oil pipe around 70 kilometres (43 miles) from the central Polish city of Plock.

The Druzhba pipeline, whose name means "friendship" in Russian, 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," Poland's top official in charge of energy infrastructure Mateusz Berger told Reuters by telephone.

Germany's PCK Refinery in the eastern town of Schwedt said it was still receiving oil deliveries from the Druzhba pipeline but at reduced capacity.

SUPPLY FEARS

Across Europe, analysts have put the gas supply shortfall at almost 15% of average winter demand and said Germany needed to cut energy consumption by around a fifth, with worrying implications for Europe's biggest economy whose industry has relied on abundant, affordable energy supplies.

The energy crisis has had knock-on effects across the whole of Europe as businesses have passed on extra costs, squeezing household budgets.

Governments are also trying to figure out how to fund emergency measures taken to protect customers and smooth out the distortions caused by the surge in prices.

EU member Portugal plans to inject 3 billion euros ($2.9 billion) into its electricity and natural gas systems to curb prices paid by companies next year, the government said on Wednesday.

In Britain, the new government set out plans for a temporary revenue limit on low-carbon electricity generators, which the industry said was a "de-facto windfall tax" on renewable energy producers.