Medvedev linked the gas price ceiling with the impotence of the European Union in the energy sector

The maintenance of the ceiling on gas prices in the European Union is explained by “zoological hatred” for Russia and the impotence of Europe, said Deputy Chairman of the Security Council of the Russian Federation Dmitry Medvedev. According to him, even a few years ago the redistribution of €180 per MWh would have seemed surprising to all participants in the gas market. Europe, according to Mr. Medvedev, will only suffer losses from the ceiling.

“The decision on the gas price ceiling is foolish for two reasons. Firstly, as in the case of oil, it is dictated not by economic logic, but by zoological hatred of Russia, based on the maniacal thesis “Russians are to blame for everything.” That is, it is a purely voluntaristic non-market measure,” Dmitry Medvedev wrote in his Telegram.

He added that the gas ceiling was adopted with a huge number of reservations, allowing to block its application, because “it won’t work in a serious way.”

“Secondly, it was adopted from the powerlessness of the EU to influence the situation. It’s just a “let’s do something” thing. That is why the limit is set at a level that a couple of years ago would have seemed surprising to absolutely all participants in the gas market, including those trading on the spot,” continued the Deputy Chairman of the Security Council.

According to him, none of the participants in trading on the TTF futures exchange could imagine the price of €180 per MWh “even in the happiest or worst dream”. Dmitry Medvedev noted that gas prices would remain high for European consumers.

On 22 December the Council of Europe officially approved ceiling on the price of gas at the level of €180 per MWh (approximately €1.85 thousand per 1 thousand cubic meters). The restriction will take effect from February 15, 2023, provided that the futures on the largest European gas hub TTF within three days not only exceed this level, but also break away from LNG prices by more than €35. Restrictions apply to any gas flowing through pipes. Now pipeline gas is supplied to the EU from Russia, Norway, Azerbaijan, as well as from Algeria and Libya. Earlier, the EU introduced a price limit for Russian oil at $60 per barrel. Russia is preparing a response to these decisions. Russian President Vladimir Putin has repeatedly said that the introduction of a price limit will only increase the shortage of fuel in Europe.

On restrictions on Russian energy resources – in the publication “Kommersant” “Thier gas, lower ceiling”.

Daria Erozbek