European Union hesitates over price cap on russian gas — The Guardian
The European Commission will probably refuse to introduce an upper price limit for russian gas
The Guardian reports this.
However, as noted in the publication, the EC will insist on the introduction of taxes on the "excess" profit of energy companies.
The Guardian reports that the draft resolution on the "emergency power supply tool" does not currently contain price restrictions for russian gas or imported gas.
Since last week, the member states could not agree on the restrictions.
The EU is expected to levy windfall taxes on the high profits of fossil fuel companies, with a separate income cap for low-carbon power producers.
The publication also notes that European Commission President Ursula von der Leyen will publish Europe's plan to combat rising electricity prices on Wednesday.
The final text is still subject to change.
However, the project shows doubts of the European Commission in obtaining sufficient support from the EU member states.
EU member states that import large volumes of gas from russia, including Hungary, Slovakia, and Austria, have spoken out against the price cap for russian gas.
After all, they fear the Kremlin will stop all gas supplies, throwing their countries into recession.
russian president putin has already threatened to stop the export of energy carriers to Europe if such a plan is agreed upon.
About a dozen countries, including France and Poland, would like to set a price cap on all imported gas.
They see it as the best way to keep prices from rising. The European Commission is not enthusiastic about this idea.
It fears the EU will lose out to countries willing to pay more in the highly competitive market for liquefied natural gas.
The Netherlands and Denmark are wary of any price limit.
On the other hand, Germany fears that limiting prices for russian gas will cause disagreements.
As the member states are divided, the commission responsible for drafting the EU's legal proposals is taking steps to unite the 27-member club.
We will remind you that on September 9, the energy ministers of the EU countries could not reach a consensus on the price limit for russian gas. Still, the European Union will continue consultations on this issue.
