“I am firmly convinced that the time has come to introduce a price cap on Russian gas imported by gas pipelines to Europe,” von der Leyen told reporters on Friday while visiting a congress of lawyers in Murnau, Germany.
von der Leyen’s statement comes at a time when the Nord Stream 1 gas pipeline is expected to restart after an unexpected three-day shutdown. However, the renewed supplies are expected to reach only 20 percent of capacity again, and according to experts, it is likely that Russia will turn off the gas erratically during the winter.
The price of gas for the European market for delivery in October was hovering around 213 euros per megawatt hour shortly after midday at the TTF virtual trading hub in the Netherlands. A year ago it was about 29 euros and two years ago it was about 15 euros/MWh. It began to increase significantly last fall, reaching a maximum near 345 euros per MWh shortly after the invasion of Ukraine by Russian troops in February, but fell below 200 euros the same day.
The possibility of introducing maximum prices for Russian gas will be discussed in a week by the energy ministers of the EU countries, whose extraordinary meeting was called by the Czech Presidency of the Council of the EU. In response to the rapid rise in prices, more and more countries are talking about capping in recent days. Von der Leyen should present a more detailed procedure on September 14, when she delivers her annual State of the EU message.
Síkel has already called for an EU-wide reaction:
The Kremlin warns of destabilization
The introduction of a price ceiling for Russian oil will lead to significant destabilization of the oil markets, the Kremlin believes. His spokesman Dmitry Peskov said on Friday that energy markets are currently in a “fever”, especially in Europe.
“The anti-Russian measures taken have led to a very, very deep crisis, to a situation where Europeans and in many ways from the United States are buying liquefied gas for crazy, completely illegitimate money, American companies are getting richer and European taxpayers are getting poorer. We will see how the processes on oil cases will develop in case of such absurd decisions,” Peskov’s Interfax agency quoted.
“There are alternative scenarios of the development of the situation,” the spokesman answered when asked by journalists whether the Kremlin is worried that such a possible decision will have a negative impact on the Russian market.
In the spring, Fiala did not yet agree to the ceiling: