Putin today has threatened to cut off energy supplies if price caps are imposed on Russia's oil and gas exports.
The Russian President warned the West it would be "frozen" like a wolf's tail as he referenced a famous Russian fairy tale.
Cutting supplies from Russia, the world's second largest oil exporter after Saudi Arabia and the world's top natural gas exporter, could leave the UK facing even higher energy prices.
Speaking at an economic forum in Vladivostok, Putin said calls for a price cap on Russian gas were "stupid", and would lead to higher global prices and economic problems across Europe.
Russian President Vladimir Putin at the Eastern Economic Forum in Vladivostok, Russia.
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Liz Truss attended her first PMQs as Prime Minister today.
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He added: "We would only have one thing left to do: as in the famous Russian fairy tale, we would sentence the wolf's tail to be frozen.
"Those who are trying to impose something on us are in no position today to dictate their will.
"They should come to their senses."
Last week the G7 announced plans to impose a price cap on Russian oil exports in a move that could also restrict Moscow's ability to secure tankers and insurance from countries outside of the G7.
Putin has said that Russia would sever any supply contracts with the West if such plans went ahead.
He said: “Will there be any political decisions that contradict the contracts? Yes, we just won't fulfil them. We will not supply anything at all if it contradicts our interests,
"We will not supply gas, oil, coal, heating oil – we will not supply anything."
At Liz Truss’ first PMQs today, the newly appointed Prime Minister took the opportunity to stress her commitment to stopping Russia’s aggression and supporting Ukraine as the conflict continues.
Addressing Labour leader Sir Keir Starmer, she said: “I know that we have had strong support from the opposition in opposing Vladimir Putin’s appalling war in Ukraine and I want us to continue to stand up to that appalling Russian aggression that has lead to the energy crisis we face now.
“I am against a windfall tax, I believe it is the wrong thing to be putting companies off investing in the United Kingdom just when we need to be growing the economy.”
She continued: “I will make sure that in our energy plan we will help to support businesses and people with the immediate price crisis, as well as making sure there are long-term supplies available.”