European energy ministers fail to agree on a cap on Russian gas prices… and Putin warns of ‘dangerous implications’ | Business

European energy ministers fail to agree on a cap on Russian gas prices… and Putin warns of ‘dangerous implications’ |  Business
European energy ministers fail to agree on a cap on Russian gas prices… and Putin warns of ‘dangerous implications’ |  Business

European energy ministers fail to agree on a cap on Russian gas prices… and Putin warns of ‘dangerous implications’ | Business

European Union energy ministers on Thursday failed to agree on a cap on Russian gas prices to ease Europe’s energy crisis, amid deep disagreements over an initial proposal that many described as a “joke”.

According to Agence France-Presse, many of the ministers gathered at today’s ministerial meeting complained that the European Commission’s proposal to cap gas prices two days ago was clearly designed never to be applied.

EU Energy Commissioner Cadre Simpson acknowledged disagreements over price caps while attending the meeting.

Czech Industry Minister Josef Sekela, whose country currently holds the presidency of the European Union, said ministers will meet in the first half of next December to try to settle differences.

He added that ministers are able to take some other “important measures” including joint gas purchases to avoid price-driving competition within the EU, offer solidarity in times of need and speed up the approval of renewable energy .

The plan provides for a maximum price of 275 euros per MWh.

But the limit comes with so many stipulations that it would not have been triggered until last August, when gas prices briefly surged above €300, sparking concern in Europe used to historical prices hovering around 10%.

Italy’s energy minister said 15 European countries are opposed to capping Russia’s gas price.

The price cap plan – if adopted – will start next January and this will be done in conjunction with a voluntary initiative by EU member states to reduce natural gas consumption by 15%.

15 European countries oppose a price cap on Russian gas (Shutterstock)

The maximum price proposed by the committee is under pressure from members such as Germany and the Netherlands; While neutral, other countries fear a cap would divert gas supplies to more profitable markets, particularly Asia.

But at least 15 EU countries (more than half of the bloc) want a practical cap on wholesale gas prices to deal with the supply crisis caused by Russia’s war in Ukraine.

While the European Union did not ban Russian gas, the Kremlin halted the flow of gas in response to sanctions imposed by Brussels following Moscow’s war against Ukraine.

Before the war, Russian gas supplies accounted for more than 40% of all gas imported into the European Union, and Germany (the exporting power) needed it particularly badly. Supply has since fallen to less than 10%.

But alternative sources – like liquefied natural gas shipped from the US and the Gulf – can’t make up the deficit, and Europe faces high heating bills in the winter.

Biden confirms efforts to cap oil prices are ongoing

In the same vein, US President Joe Biden, in statements to reporters today, Thursday, said the proposal by Washington and allies to cap Russia’s oil price still stands, adding that he has spoken to Treasury Secretary Janet Yellen on the matter regard.

The Group of Seven is looking forward to setting a maximum price for Russian oil transported by sea of ​​between $65 and $70 a barrel, but European Union country governments have yet to agree on the price, and talks are still ongoing in this regard are to be continued .

The European Union and the United States have intensified attempts in recent days to reach an agreement on capping Russian oil prices.

Putin warns of dire consequences for global energy markets

Russian President Vladimir Putin said a cap on Russian oil prices would have “serious consequences” for global energy markets.

In a press statement issued by the Kremlin today, Putin added that attempts by some western countries to limit the cost of Russian crude oil go against world market principles and will have serious repercussions on energy markets.

The statement released by the Kremlin said the Russian president’s comments came during a phone conversation with Iraqi Prime Minister Muhammad Shia’a al-Sudani.

The Russian agency “TASS” quoted a Kremlin spokesman as saying that Putin had given the order not to export oil and gas to countries that set a price cap.


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