The European Union is set to propose a price cap on Russian natural gas at a meeting of member energy ministers on Friday, following Russian President Vladimir Putin threatened to halt the move if Europe took it, Archyde.com reported on Wednesday. All energy supplies, the remarks further widen the risk of European countries implementing rationing this winter.
European Commission President Ursula von der Leyen said a price cap on Russian natural gas would be proposed at the meeting, which must cut the source of funds that Russian President Vladimir Putin uses to finance the Russian military in the war.
Meanwhile, Putin anticipated the EU move and said Russia would fight back. He told the Eastern Economic Forum (Eastern Economic Forum) that if it is contrary to Russia’s interests, it will not provide any energy products such as natural gas, oil, coal and thermal oil.
Putin also said that if the price cap were implemented, it would mean the supply contract would be torn up, citing the Russian fairy tale of the frozen wolf’s tail as a warning to these Western countries to beware of the harsh winter.
But the EU only plans to impose a cap on the price of natural gas in Russia, not the price of electricity paid by generators that use natural gas.
The escalating standoff between Russia and the European Union has further pushed up Europe’s high natural gas prices, escalating the financial burden of EU member states, preventing their energy suppliers from failing and economically struggling people struggling to meet expensive energy bills in the cold winter.
Europe has accused Russia of weaponizing energy supplies in retaliation for Western sanctions over its invasion of Ukraine, but Russia has accused Russia of causing supply problems. At present, the North Stream No. 1 natural gas pipeline is faulty, and the gas supply to Europe has been stopped.
Differences of opinion within the EU
However, there are signs that EU member states are divided over plans for a price cap. The Czech Republic holds the EU presidency this time, and the country’s trade and industry minister Josef Síkela said the issue should be removed from Friday’s agenda.
Czech media reported that Josef Síkela did not see this as a constructive proposal, as another way of sanctioning Russia, rather than a solution to Europe’s energy crisis.
In addition, the European power industry association Eurelectric also criticized the EU for setting the electricity price of 200% for non-gas generators. EUR / MWh cap plan.
Eurelectric secretary-general Kristian Ruby said the root cause of the problem was a shortage of natural gas supplies and the EU’s reliance on fossil fuels. Instead of resorting to electricity market intervention, the government should seek to address this problem.
