Director General of the International Atomic Energy Agency (IAEA) Rafael Mariano Grossi speaks to media in Kyiv. File/AP

Ukraine and Russia have accused each other of risking nuclear disaster by shelling near Europe's largest nuclear plant, which officials said disrupted power lines on Monday and took the sole remaining reactor offline.

The incident came as Ukrainian forces pressed their counter-attacks in the south and east, raising the national flag over a town in Kherson province, a southern region occupied by Russia since the war's early days.

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The International Atomic Energy Agency (IAEA), citing information supplied from Ukraine, said the plant's backup power line had been cut to extinguish a fire but that the line itself was not damaged and would be reconnected.

The UN nuclear watchdog said the plant had enough electricity to operate safely and would be reconnected to the grid once backup power was restored.

The IAEA's presence at the plant was reduced to two staff members from six on Monday. IAEA chief Rafael Grossi will issue a report on Ukraine, including the plant, on Tuesday and then brief the UN Security Council, the IAEA said.

Ukrainian President Volodymyr Zelenskiy on Monday warned of a near "radiation catastrophe" and said the shelling showed Russia "does not care what the IAEA will say."

The nuclear concerns add to the ongoing energy fight between Moscow and the West since Russian troops invaded Ukraine in late February as the larger military conflict continues.

European gas prices soared on Monday as Russia kept its main gas pipeline to Germany shut, bringing fears of a bleak winter for consumers and businesses across the continent.

Moscow blames disruption to equipment repairs and maintenance caused by Western sanctions for its halt to the flow of gas through Nord Stream 1, its main pipeline to Germany. Russia was due to reopen the pipeline on Saturday but now says an oil leak has forced it to shut indefinitely.

Pipeline operator Gazprom’s Deputy Chief Executive Officer Vitaly Markelov told Reuters on Tuesday Nord Stream 1 would not resume shipments until Siemens Energy repaired faulty equipment.

Russian servicemen guard an area of the Zaporizhzhia Nuclear Power Station in Enerhodar, Zaporizhzhia. File/AP

Siemens Energy said on Saturday that it had not been commissioned to carry out repair work, and that the leak reported by Gazprom would not usually affect the operation of the pipeline.

Europe and the United States accuse Russia of using energy as a weapon and are collaborating to ensure supplies.

Russian Energy Minister Nikolai Shulginov told reporters at the Eastern Economic Forum in Vladivostok on Tuesday that Moscow would respond to proposed price caps on Russian oil by shipping more supply to Asia. (Full Story)

The Kremlin warned the West on Monday that it would retaliate after Group of Seven finance ministers agreed last week to a cap to pressure Russia over its actions in Ukraine.

Reuters