It’s time to cap the price of Russian gas, Von der Leyen said

In the spring, EU states tasked the commission with preparing an analysis of possible price caps due to the unprecedented rise in energy prices related to the Russian invasion of Ukraine.

“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).

According to her, in addition to savings, investments in renewable sources are other ways to deal with the rise in gas and electricity prices.

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.

Former Russian President Dmitry Medvedev responded to von der Leyen’s words by announcing that Moscow would stop supplying gas to the Union in that case. “There will simply be no Russian gas in Europe,” Medvedev wrote on the Telegram social network, according to Reuters.

Since July, the Russian company Gazprom has reduced the volume of supplies through the Nord Stream gas pipeline 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 transportation of the raw material indicate that on Saturday morning the deliveries will resume as planned.

Spain will propose that the entire EU take over the gas cap for electricity production

Economy

The market probably reacted favorably to the EC chairwoman’s words. On Friday, the price of gas on the Rotterdam stock exchange, which is decisive for the European market, continued its downward trend from the last few days.

Around midday, one megawatt hour with delivery in October was selling for 213 euros (5,215 CZK), which is almost 13 percent less than on Thursday. At one point the price was even ten euros lower.

However, compared to the price a year ago, this is still a significantly higher price. Last year, MWh was sold for less than 30 euros (CZK 730).

The article is in Czech

Tags: time cap price Russian gas Von der Leyen

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