The EU will offer a maximum price for Russian gas: the issue will be considered on September 9,
Ursula von der Leyen .
KYIV. UkraineGate . 7 . September . 2022 | Economy .
The European Commission will propose capping the price of Russian gas along with measures that include a mandatory reduction in the EU’s electricity consumption and limiting the income of non-gas generating companies, European Commission President Ursula von der Leyen said on Wednesday .
Quote
“We will propose to limit the price of Russian gas… We must reduce the revenues of Russia, which Putin uses to finance this brutal war in Ukraine,” Von der Leyen said.
Details
Russian President Vladimir Putin said on Wednesday that Russia will cut off gas and oil supplies if price caps are imposed. Some EU countries, which will need to approve the EU’s proposals, fear capping Russian gas prices if it costs them a cut in the supplies they still receive from Moscow, the paper notes.
Von der Leyen outlined future EU proposals to reduce skyrocketing gas and electricity prices, which have pushed up household bills and hurt Europe’s energy-intensive industries. According to von der Leyen, the EU wants to cap the income of non-gas generating companies and redirect their “windfalls” into measures to support households and businesses.
European electricity prices are generally set by gas-fired utilities, and the cap will aim to reduce the cost of electricity produced by wind farms, nuclear plants and coal-fired power plants, which have lower operating costs because they do not experience the sharp rise in gas prices. gas, the publication explains
Oil and gas companies that posted huge profit jumps would also have to make a “solidarity contribution,” von der Leyen said, without giving further details.
Other measures to be proposed by Brussels include requiring countries to reduce electricity consumption during peak hours, as well as liquidity assistance for companies.
EU energy ministers will reportedly discuss the proposals at an emergency meeting on Friday, September 9.
Addition
Electricity and fuel prices in Europe have risen sharply as Russia has limited the amount of gas it pumps into Europe. Moscow explained the reduction in supplies to technical problems and Western sanctions imposed due to its invasion of Ukraine.
Source: Ukrgate
