Guardian: The EU will not set a ceiling on the price of Russian gas

The European Union (EU) has abandoned the idea of ​​limiting the price of Russian gas, but wants to impose a tax on excess profits of oil and gas companies, reports The Guardian with reference to a draft document of the European Commission (EC). The new tax is expected to be levied on fossil fuel companies and will also “separately limit the revenues of low-carbon electricity producers.”

The publication clarifies that the draft does not mention the introduction of a ceiling on prices for Russian or other imported gas. But oil and gas companies are planning to impose a tax on excess profits, which they called the “solidarity contribution”. The EC notes that in 2022, the profits of oil, gas and coal companies have already increased five times. The reason for this in the EC is considered “unpredictable events in the energy markets” against the backdrop of hostilities in Ukraine. What will be the rate of the new tax is unknown.

EU countries are also invited to agree on a common target for reducing electricity consumption during peak hours. At what level it can be installed, is not specified. The head of the EC, Ursula von der Leyen, is due to present a final plan to combat rising electricity prices tomorrow, September 14th. Changes may still be made to the text, The Guardian clarifies.

The publication believes that the EU changed its mind about setting a price ceiling for Russian gas due to insufficient support for this initiative. It was opposed by EU members that import large volumes of gas from Russia – Hungary, Slovakia and Austria. The Netherlands and Denmark were “cautious” about the introduction of a price cap, while Germany expressed fears that capping Russian gas prices “would cause controversy.”

In July, European countries approved a plan to reduce gas consumption by 15%. 7 September EC officially announced, which will invite the EU countries to introduce a price cap on Russian gas as one of the measures to combat the energy crisis. Politico informedthat the possibility of limiting the price at the level of €50 per 1 MW•h is being considered. President Vladimir Putin this idea named “nonsense”, and also warned that Russia would not supply energy resources to its own detriment. The Ministry of Energy of the Russian Federation also expelled sale of gas or oil at a limited price. At the Council in Brussels on September 9, 15 EU countries spoke for a common ceiling on gas prices, but it was not possible to agree on it.

Details – in the material “Kommersant” “Europe hits the ceiling”.

Laura Keffer