The EU is planning “profound and comprehensive” electricity market reforms to deal with the energy crisis sparked by Russia’s war in Ukraine, European Commission chief Ursula von der Leyen said on Wednesday.

The measures include a cap on power generators’ profits, which would bring in 140 billion euros ($140 billion) and would “cushion” consumers from high prices, she said in her annual State of the European Union address.

Further steps include energy rationing, temporary state aid and the decoupling of gas and electricity prices.

She also announced the creation of a new bank that aims to boost investments of up to €3 billion in hydrogen as a green alternative to fossil fuels.

The measures came in response to soaring energy costs as Europe painfully unwinds its decades-long dependence on Russian fossil fuels.

Sanctions against Russia and Moscow’s retaliation for cutting off gas supplies have sent prices soaring, leaving Europe with a difficult winter ahead.

“Russia continues to actively manipulate our energy market. They would rather flare the gas than deliver it,” von der Leyen said.

“This market no longer works.”

In part to prepare for a harsh winter, the block has hastily amassed gas reserves reaching 84 percent of capacity well ahead of an October deadline, von der Leyen said.

But the hole left by the lack of Russian supplies will still hurt.

The idea of ??taxing non-gas electricity providers’ profits is to divert the money to households and businesses to weather the situation.

“These companies are making sales that they never booked, that they never even dreamed of,” von der Leyen said.

“In these times it’s wrong to have exceptional record profits benefiting from war and at the expense of consumers,” she said.

She said “big oil, gas and coal companies” would also have to “make a contribution to the crisis.”

At the same time, von der Leyen emphasized that the EU was switching to “reliable suppliers”, naming the United States, Norway and Algeria among them.

In the long term, the EU wants to focus more on renewable energies, said von der Leyen, and hammered in a key promise of its mandate. The hydrogen investment bank proposal is another step towards that future.

Another announcement from der Leyens was proposed legislation to secure critical raw materials for the EU as it shifts towards greater use of electric vehicles and other greener technologies.

In her speech, she highlighted China’s stranglehold on resources such as lithium, which are critical to the energy transition.

“Today, China controls the global processing industry. Almost 90 percent of rare earths and 60 percent of lithium are processed in China,” she said in her annual State of the European Union address.

The proposed law would identify “strategic projects along the entire supply chain” and “build strategic reserves where supply is at risk,” she said.

As for Russia, the EU leader signaled that the bloc would keep up its sanctions pressure on Russia as long as it waged its war in Ukraine.

“I want to be very clear that sanctions are here to stay. This is the time for us to show determination, not appeasement,” she said.

Ukraine’s First Lady Olena Zelenska attended the gathering in Strasbourg and received a standing ovation from lawmakers.

Von der Leyen told MPs that she will travel to Kyiv to meet Ukrainian President Volodymyr Zelenskyy, her third trip to the Ukrainian capital since the war began.

“Today I will travel to Kyiv to meet President Zelenskyy” to discuss the continuation of European aid “in detail”, she said in her major annual political speech.

“For the first time in its history, this Parliament is debating the state of our Union while war rages on European soil,” von der Leyen said in Ukrainian colors.