European Commission proposes price ceiling for Russian gas, among other measures

Ahead of the extraordinary meeting of European energy ministers on Friday, European Commission President Ursula von der Leyen presented a number of measures the Commission plans to propose, in order to protect vulnerable consumers and businesses from "astronomical" electricity prices. 

One of them is a price cap on Russian gas. "The aim is clear: we need to cut off the revenue that [Russian President Vladimir] Putin is using to finance this horrific war against Ukraine," von der Leyen said. A broader price ceiling for gas isn't ruled out, but Von der Leyen pointed out that there is a global scarcity of energy and that ships carrying liquid gas can easily find other destinations, unlike pipeline gas. 

In addition to the price cap on Russian gas, the Commission is pushing for four other measures. These include a ceiling on the revenues of renewable and nuclear energy producers, and a solidarity contribution from oil and gas companies. This money should be used by Member States to help vulnerable citizens and companies. Finally, von der Leyen also called for a compulsory savings target for electricity consumption at peak times and liquidity support for energy companies.

Putin already responded to the European proposals, by threatening to cut off the supply of Russian oil and gas to countries who implement a price ceiling. "We do not supply anything at all if it goes against our interests, in this case economic ones. Neither gas, nor oil, nor coal. Nothing," The Russian President said at an economic forum in Vladivostok.

The European Commission accuses Russia of using the supply of gas as a weapon to influence the war in Ukraine, but Putin denies this claim. He called on European countries to "come to their senses". "If European countries want to give up their competitive advantage, it is up to them to decide," Putin warned.

European Council President Charles Michel is currently in Qatar, one of the world's leading gas producers, on a diplomatic mission with the European Union. Michel will discuss issues such as the war in Ukraine and the energy crisis in Doha, and criticized the Commission last Friday for reacting too slowly to the energy crisis. 

On Wednesday, European Commissioner for Justice Didier Reynders refuted Michel's criticism on the Walloon radio channel RTBF. "There is no point in launching polemics between institutions when the real challenge is to maintain unity between member states," he reacted. "Arguments within the European institutions are pointless. We need unity."

(TOM)

© BELGA PHOTO POOL PHILIP REYNAERTS