Prime Minister of Greece called for the introduction of a price ceiling not only for Russian gas

The price ceiling should be set for all natural gas purchased by the EU states, and not just for Russian, says Greek Prime Minister Kyriakos Mitsotakis.

“Natural gas prices are ten times higher than they were two years ago. In this regard, we have made two interventions – we have increased the aid for heating by 300 million euros, and we can reduce the price of diesel fuel for heating in the first phase and thus encourage households to switch home heating from natural gas to diesel fuel. But there will also be a subsidy for natural gas prices. The price for the end consumer cannot be what it is now,” Mitsotakis said at a press conference in Thessaloniki (quoted from “RIA News”).

The Greek prime minister also promised “a generous subsidy on natural gas prices.” He noted that the price of gas at the moment “has nothing to do” with the exchange price. Mitsotakis pointed out that Greece was one of the first countries to propose to the EU a general ceiling on natural gas imports, not just Russian.

“The ceiling on the index on the TTF exchange, and not only on imported Russian natural gas. We do not know if such a proposal will be accepted. But there is broad agreement on taxing the windfall profits of companies,” Mitsotakis said.

European Union (EU) energy ministers in Brussels during an emergency meeting of the EU Energy Council on September 9 could not agree introduction of a price ceiling for Russian gas, Reuters reported. Bloomberg sources explained that the EU countries are in no hurry to limit prices only for Russian gas due to fears that the Russian Federation in response may completely stop its supplies.

The fact that Russia will not sell energy resources to the EU on unfavorable terms was said by Russian President Vladimir Putin on September 7 at the WEF-2022 in Vladivostok, calling the idea of ​​an administrative way to limit gas prices from Russia “nonsense and nonsense.” “Will any decisions of a political nature be made that contradict the contracts? Yes, we simply will not fulfill them! And we won’t supply anything at all if it contradicts our interests,” Putin warned.

The cost of gas in the EU began to grow in the fall of 2021, when TTF quotes for the first time exceeded $2,000 per 1,000 cubic meters. Volatility in the gas market intensified with the start of a special military operation in Ukraine and the introduction of new sanctions against the Russian Federation, which created risks for a reduction in supplies fuel. In early March, spot gas prices in Europe approached $3,900 per 1,000 cubic meters. m, but then stabilized around $2000.

According to the ICE exchange, on September 9, futures for gas supplies in October traded at a price slightly above $2,000 per 1,000 cubic meters. m.

From April 1 Moscow translated payment for gas supplies to unfriendly countries, including EU states, from dollars and euros to rubles. Those companies that did not agree to the new payment scheme were forced to buy gas from other countries or buy Russian gas from those who agreed to convert the payment into the Russian national currency. “Gazprom» stopped deliveries to Poland and Bulgaria, some companies from Germany, the Netherlands, Finland, etc.