Analyst Yushkov predicted the consequences of introducing a ceiling on prices for Russian gas

The EU may face a shortage in the gas market

European Commissioner for Energy Kadri Simson has previously proposed a price cap on all Russian gas. In addition, she said that the European Commission is in favor of negotiating price corridors exclusively with those suppliers with whom the EU “can conduct them.” Igor Yushkov, a leading analyst at the National Energy Security Fund, believes that Europe is in a difficult position.

In conversation with RT Yushkov noted that if the EU is talking about all Russian gas, then the problem will be with LNG. The expert explained that when a low price ceiling for Russian gas, including LNG, is set, supplies will turn around, and raw materials will go to Asia. Thus, according to the specialist, Europe will face an increase in the shortage in the gas market, since Russia ranks third in terms of LNG supplies to Europe after the United States and Qatar.

Yushkov believes that Gazprom will interpret the introduction of a price ceiling as a violation of contractual obligations, so they will say that contracts with European companies contain a pricing formula. If the fee is less than this formula, then we can assume that there was no payment, and the next batch will not be shipped, the expert explained. He added that the Europeans are waiting for a large deficit and high prices.

The specialist clarified that at the moment it is difficult to say how Europe will receive a different, alternative gas. According to the expert, for the EU now is “a rather unpleasant story.” In the event of a cessation of supplies from Russia, gas prices will rise throughout Europe due to the fact that there is only one market, so “everyone will suffer economically,” Yushkov concluded.

Read also: Putin’s address on September 30: online broadcast