Politico: Germany is skeptical about the introduction of a price cap on Russian gas

The German government doubts the advisability of imposing marginal prices for gas supplies from Russia, writes Politico.

“We remain skeptical about issues related to limiting gas prices, but in general we are ready for negotiations within the European framework,” a source in the German Ministry of Economy told the publication.

In Berlin, they believe that the EU should focus on “less provocative steps” in the fight against the energy crisis, for example, to impose taxes on excess profits of energy companies. This step has already been agreed by the ruling coalition in the Bundestag, the newspaper notes.

The German leadership is concerned about the retaliatory measures that Moscow might take if a price limit is introduced. In particular, Berlin fears a complete cessation of gas supplies, which will have a particularly painful impact on the countries of Central Europe – the Czech Republic, Slovakia and Romania. This situation will force Germany to share its gas with the affected countries in accordance with EU rules, despite the fact that Berlin is already largely deprived of Russian “blue” fuel, Economy Minister Robert Habeck said earlier.

Such a position of the first EU economy may make it impossible to agree on a price ceiling for gas from Russia at the EU level, one of the diplomats told the publication. This issue will be discussed at the EU level today, September 7th.

On September 2, the head of the European Commission, Ursula von der Leyen, announced that it was time to introduce a price ceiling for Russian gas in the EU. She clarified that the European Commission will soon come up with this initiative. On the same day, the finance ministers of the G7 countries (USA, UK, Canada, Japan, Italy, France and Germany) announced their intention to impose a price ceiling on Russian oil. To do this, they want to create a “broad international coalition” that will set a price limit for Russian oil. The US Treasury believes that the introduction of such a measure will guarantee the supply of Russian oil regardless of new sanctions, as well as avoid sharp jumps in gas prices.

Earlier today Russian President Vladimir Putin declaredthat the idea of ​​an administrative way to limit the price of gas from Russia is “nonsense and nonsense.” He also noted that everything that is happening now 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.

Subscribe on “Vedomosti” in Telegram and stay up to date with the main news of the economy and business