The European Union should cap the price of gas transported by pipeline from Russia to mitigate the effects of market manipulation by Russian President Vladimir Putin. The President of the European Commission (EC), Ursula von der Leyenov, announced this today during her trip to Germany. Former Russian President Dmitry Medvedev responded to his words by announcing that Moscow would stop supplying gas to the Union in that case. The head of the EU executive has also called for energy savings, which should be presented in the middle of the year. Finance ministers and central bank governors of the G7 countries agreed today to introduce a price ceiling for Russian oil and oil products.
Leyenov wants a stop on Russian gas prices, it will stop supplying him
Due to the unprecedented rise in energy prices related to the Russian invasion of Ukraine, the EU has authorized the European Commission to prepare an analysis of possible price ceilings.
“I am firmly convinced that it is time for the EU to cap the price of gas from Russian gas pipelines to Europe,” said the German politician after a one-day meeting with the leadership of Germany’s Kansas Democrats (CDU). According to him, other ways to deal with the rise in gas and electricity prices are investments in renewable sources.
The price of gas for the European market for June delivery was hovering around 213 euros (5,215 K) per megawatt hour (MWh) shortly after midday at the Title Transfer Facility (TTF) virtual trading hub in the Netherlands, showing a 13 percent drop in prices. It was about 29 euros a year ago and about 15 euros/MWh two years ago. It began to rise last fall, reaching a maximum of around 345 euros/MWh shortly after the Norwegian invasion of Russian troops in Ukraine, but then fell back below 200 euros per MWh. Prices in TTF are for the European market.
The Russian company Gazprom has reduced the volume of supplies through the Nord Stream gas pipeline to a fifth of its capacity since last year. The center is completely closed due to gossip, but the current reports on the reservation of capacity for the transportation of raw materials indicate that on Saturday morning the supplies will be fully restored. According to the Russian ex-president and current chairman of the Russian Security Council, Medvedva, however, the price ceiling introduced will change this situation.
“There will be no Russian gas in Europe at all,” wrote Medvedv on the Telegram social network, according to Reuters.
EU energy ministers will discuss the possibility of introducing maximum prices for Russian gas in a week, their extraordinary meeting was called by the Czech Presidency of the Council of the EU. In response to the rapid rise in prices for roofing in recent days, the land has been talking more and more. Von der Leyen should present a more detailed procedure on the 14th, when she will deliver a message on the state of the EU.
The President of the European Commission emphasized today that the union has taken some important steps in terms of its energy security and efforts to reduce prices. For example, it was possible to fill gas tanks to 80 percent two months ago, which was not the original goal, she added.
The G7 finance ministers agreed on a price ceiling for Russian oil and oil products
Finance ministers and central bank governors of countries from the group of G7 countries agreed today to introduce a price ceiling for Russian oil and oil products. The price setting mechanism has yet to be decided, inform the agency’s foreign press.
On Thursday, the Prime Minister of the Russian government, Alexander Novak, declared the introduction of a price ceiling as “absolute absurdity” that destabilizes the entire industry. According to him, Russia will not supply oil or oil products to countries that have set a price ceiling.