Novak named the main victim of gas price restrictions

First of all, European suppliers, not Russia, will suffer from the gas price limit. This statement was made by Deputy Prime Minister Alexander Novak in an interview with the Russia 24 TV channel.

“Today, I want to say that the Europeans are doing the same as if against Russia, accusing Russia of rising prices, but in fact this will primarily affect European consumers, European suppliers. Because today the main suppliers to Europe are Norway, Algeria, this is American liquefied gas. We are talking about the fact that these suppliers will suffer first of all, and this will somehow concern them, ”said Novak (quote by RIA Novosti)

The Deputy Prime Minister stressed that “illogical decisions” have been made in the gas market. According to him, “no one yet fully understands how this mechanism will work.”

Today earlier Novak declaredthat Russian energy resources will remain in demand in the world, since without them it will not be possible to ensure economic development throughout the world. Hydrocarbons will continue to play a key role in global energy for a long time to come, despite the spread of renewable generation sources, which is why Moscow is confident in the demand for Russian resources, the Deputy Prime Minister added.

December 19 EU countries agreed gas price limit of 180 euros per 1 MWh, which corresponds to $1975 per 1000 cubic meters. The ceiling will take effect from February 15, 2023. The ceiling will be activated if the gas price at the TTF gas hub in the Netherlands (the most liquid gas hub in the EU) exceeds the agreed level, and the spread to the price of liquefied natural gas (LNG) in the EU will be more than 35 euros per 1 MWh.

The Kremlin has repeatedly stated that Russia will not supply energy resources to countries that join the price ceiling. In September, President Vladimir Putin during a speech at a plenary meeting of the Eastern Economic Forum (WEF) named “nonsense and nonsense” the idea to limit the price of Russian gas. Then he noted that everything that happens in the European gas market is the result of the activities of European specialists and the European Commission. Russia, for its part, has always offered long-term contracts, on the basis of which prices would be formed, the head of state emphasized.