Minister of Industry and Trade of the Czech Republic Jozef Sikela (left) and German Vice-Chancellor Robert Habeck (right) talk on the sideline of the December 19 meeting in Brussels. (Photo: Olivier Hoslet/EPA)

The price cap is significantly lower than the 275 euros the European Commission suggested in November. The price cap will take effect on February 15th, but the European Commission may cancel the price cap if it disrupts supply chains, negatively impacts support mechanisms between countries, or undermines Europe’s efforts to reduce gas use.

Kremlin spokesman Dmitry Peskov said, “This is a violation of market price-setting, an infringement of market processes. Any reference to a cap is unacceptable.”

Hungary’s Minister of Foreign Affairs Peter Szijjiarto said Hungary would not inform or consult with the EC on their plan to extend a gas purchase contract with Russia if the EU countries approved the price cap. In September Hungary signed two long-term contracts with Gazprom to buy 4.5 billion cubic meters of gas every year. The 15-year contract may be revised after 10 years.