CERNOBBIO, Italy, Sept 3 (Reuters) - The European Union expects Russia to respect energy contracts it has agreed but is prepared to meet the challenge if it fails to do so, Economic Commissioner Paolo Gentiloni said on Saturday.

Asked about the halt to the Nord Stream 1 gas pipeline, Gentiloni told reporters: "We expect Russia to respect the contracts that they have.

"But even if weaponisation of energy continues or increases, the EU is ready to react," he said at the Ambrosetti Forum business conference in northern Italy, noting high gas storage levels and plans to conserve energy in the winter. (Reporting by Valentina Za and Elvira Pollina Writing by Keith Weir; Editing by Ros Russell)