The European Union will encourage member states to reduce gas demand by encouraging industries to use less gas to prepare for possible further cuts in supplies from Russia, according to a draft plan seen by Reuters.

Brussels is preparing for possible further cuts in Russian gas supplies, which the head of the International Monetary Fund warned could plunge the economy into recession.

The European Commission's plan, due to be published on 20 July, proposes that countries introduce financial incentives for industry to reduce its use of gas, as well as launch information campaigns to encourage consumers to use less heat and cooling.

Measures aimed at industry could include auctions or tenders to encourage large consumers to use less gas in exchange for compensation, the draft says, which could be amended before publication.

The EU seeks to ensure that as much gas as possible is stored for the winter as well, when demand for gas for home heating peaks.

Households are "protected customers" under EU law, meaning they would be the last affected by gas rationing.

"Early joint action at EU level at this critical moment of the storage filling process will reduce the need for possible and more painful demand reduction later in the winter," the draft said.

The EU's gas storage facilities are currently 62 percent full, far from the bloc's goal of filling them to 80 percent by November.