Politico: EC wants to cap Russian gas price at €50 per MWh
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France called for the introduction of a price ceiling for gas supplies from Russia, reports Politico. The document developed by the European Commission (EC) assumes that the price ceiling will be set at €50 per 1 MWh. At the same time, the EC itself calls such a measure risky. The initiative will be discussed by representatives of the countries of the European Union (EU) today, September 7. Yesterday, the October futures price at the TTF hub in the Netherlands was €220 per MWh.
According to the publication, the proposed gas price level “is less than one-fifth of the current spot price.” The document warns that such a move “would be a gamble” and “the EU must be prepared to immediately cut off Russian gas” because Moscow could retaliate by completely cutting off all supplies.
Politico writes that while Spain is considering the proposal, Germany has also “taken a more cautious stance.” A spokesman for the German economy ministry said Berlin wants to set up a national expert commission to study the “most reasonable approach” to capping gas prices. Politico writes that such a move “would slow down any swift EU-wide action.”
Laurence Boone, Secretary of State for European Affairs at the French Foreign Ministry, believes that any restrictions can be introduced for six months and, if necessary, extended for another six months. Ms. Boone warned that such measures would be effective only if all EU countries agree with them.
In early September, the finance ministers of the G7 countries (Great Britain, Germany, Italy, Canada, France, Japan and the USA) agreed limiting the price of oil from Russia, but the ceiling has not yet been set. EC wants to achieve support for this measure from all European countries, and also proposed to extend similar restrictions to Russian gas. September 2 Gazprom announced about a complete shutdown of Nord Stream for an indefinite period due to an identified oil leak. Against this background, the price of gas in Europe grew more than 30%.
Details – in the publication “Kommersant” “Winter Announced”.
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