European Commission head backs Russian gas pipeline price cap

European Commission head backs Russian gas pipeline price cap
European Commission head backs Russian gas pipeline price cap

European Commission chief Ursula von der Leyen backed a Russian gas pipeline price cap on Friday, saying Europe needed to impose it to foil what she saw as Russian President Vladimir Putin’s attempts to manipulate the block energy market.

She also called for action to mop up some windfall profits electricity providers have made from the gas crisis, using the money to support vulnerable citizens and businesses.

I firmly believe that now is the time to cap the prices of the Russian gas pipeline to Europevon der Leyen told reporters in Murnau, where a meeting of German conservative lawmakers took place.

“A gas price cap can be offered at European level, and there is also a legal basis at European level to temporarily skim profits as an emergency measure in times of crisis,” she added.

In the current EU electricity market, the price at which producers sell their electricity is set by the last plant needed to meet demand. Usually, a gas plant is the last link in the chain, meaning the recent spike in gas prices has driven up the cost of electricity.

Gas deliveries to Europe have been reduced by Russia since its invasion of Ukraine began. This drove gasoline prices to record highs. Countries and their governments have bent over backwards to find alternative supplies and fill gas storage for the winter.

EU energy ministers will meet on September 9 to discuss their response to soaring prices. Von der Leyen will then, on September 14, present the Commission’s ideas on emergency EU measures to address the problem of soaring prices, a senior commission official said on Thursday.

“Over the past weeks and months, we have worked hard at European level to combat these [Putin’s] manipulations,” von der Leyen told Murnau.

“We have agreed on [gas] storages and has reached an average of 80% fullness now, two months ahead of schedule,” she said, noting Norway was now supplying more gas to the bloc than Russia.

“But all this is not enough: we see that the electricity market no longer works because it is massively disrupted due to Putin’s manipulations,” said von der Leyen, adding that Russia was now opting for the torch rather than to deliver the contractual volumes to Europe. .

The source:
Reuters, TVP World

. head European commission supports price cap gas pipeline russian

. European Commission backs Russian gas pipeline price cap

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