Leyen wants to cap Russian gas prices. We will close the taps, threatens Medvedev

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. President of the European Commission (EC) Ursula von der Leyen announced this today during her trip to Germany. Former Russian President Dmitry Medvedev responded to her words by announcing that Moscow would stop supplying gas to the Union in that case. At the same time, the head of the EU executive called for energy savings, she should present a concrete plan in mid-September.

In the spring, the EU states instructed the commission toto the unprecedented rise in energy prices related to the Russian invasion of Ukraine prepared an analysis of possible price ceilings.

“I am firmly convinced that it is time to cap the price of gas from Russian gas pipelines to Europe,” said the German politician after today’s meeting with the leadership of the Christian Democrats of Germany (CDU). Other ways to deal with rising gas and electricity pricesother, according to her, in addition to savings, there are also investments in renewable resources.

The price of gas for the European market for October delivery was shortly after midday at the Title Transfer Facility (TTF) virtual trading hub in the Netherlands hovered around 213 euros (5,215 CZK) per megawatt hour (MWh). A year ago it was about 29 euros and two years ago it was about 15 euros/MWh. It began to increase more noticeably last autumn, reaching a maximum of around 345 euros/MWh shortly after the February invasion of Ukraine by Russian troops, but fell below 200 euros per MWh on the same day. Prices in TTF are decisive for the European market.

The Russian company Gazprom has reduced the volume of deliveries through the Nord Stream gas pipeline since July to a fifth of its capacity. On Wednesday, it was completely interrupted due to maintenance, but the current records of the capacity reservation for the transport of raw material indicate that on Saturday morning the deliveries will resume as planned. However, according to Russian ex-president and current deputy chairman of the Russian Security Council Medvedev, the possible introduction of price ceilings will change this situation.

“There will simply be no Russian gas in Europe,” Medvedev wrote on the Telegram social network, according to Reuters.

About the possibility of introducing maximum prices for Russian energy ministers of the EU countries, whose extraordinary meeting was convened by the Czech Presidency of the Council of the EU, will speak in a week. 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.


The G7 finance ministers agreed to cap the prices of Russian oil and oil products

Finance ministers and central bank governors from the G7 group of developed countries agreed today to introduce a price ceiling for Russian oil and oil products. The mechanism for setting the ceiling has yet to be decided, foreign press agencies inform. The measure will include a ban on the provision of services enabling the transport of Russian oil and oil products if the purchase price exceeds a set ceiling.

Deputy Prime Minister of Russia Alexander On Thursday, Novak called the introduction of a price ceiling “absolute absurdity”, which destabilizes the entire industry. According to him, Russia will not supply oil or oil products to countries that support the establishment of a price ceiling.

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According to The Kyiv Independent, Russia is losing more troops and equipment in southern Ukraine. Operations Command reports that three tanks, four howitzers, a rocket launcher, 10 armored vehicles and an ammunition depot were destroyed. 37 Russian soldiers lost their lives.

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US President Joe Biden will ask Congress to approve 11.7 billion dollars (288 billion crowns) to finance aid to Ukraine. In total, the government wants more than 47 billion dollars (1.16 trillion crowns) from Congress to cover crisis and urgent expenses, the AP agency wrote today. During this year, the US allocated approximately 40 billion dollars to support Ukraine, and the US authorities have already used three quarters of this money.

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Russian President Vladimir Putin and President of the European Commission Ursula von der Leyen at the Berlin Conference on Libya (January 19, 2020)


The article is in Czech

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