The European Commission will propose to the EU to introduce a price ceiling on Russian gas

On Friday, September 9, the European Commission (EC) will propose to the EU countries to set a ceiling price for the supply of Russian pipeline gas, EC President Ursula von der Leyen said at a press conference, the recording of which published in Twitter politics.

“We are trying to reduce gas prices. Therefore, we will propose a price limit for Russian gas,” she said.

According to her, such a measure will reduce the Kremlin’s revenues, which are used to finance a special operation in Ukraine. The European Union is ready for such a step, she stressed: in February, Russian pipeline gas accounted for 40% of all supplies, but now it is only 9%.

This proposal will be presented to the Council of the EU on 9 September. In addition to the price ceiling for Russian blue fuel, other measures will be proposed as part of the fight against the energy crisis, the head of the EC said. In particular, we are talking about reducing electricity consumption during peak hours, limiting the income of companies producing electricity at “low costs”, as well as additional contributions for oil and gas companies.

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.

Against the introduction of a price cap on Russian gas speaks Germany, says Politico. In Berlin, they fear 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. In Germany, in this case, they allow a complete cessation of gas supplies from Russia, which will especially painfully affect 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, with Berlin already largely deprived of Russian “blue” fuel.

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.

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