EC: EU countries agreed to exclude gas from the Russian Federation from contracts for joint purchases

Energy ministers of the European Union (EU) countries have decided to exclude Russian gas from contracts for joint purchases. This is stated in the statement of the European Commission (EC), distributed on the basis of the meeting held on Thursday, November 24 in Brussels.

“The new rules will create opportunities for EU member states and their energy companies to purchase gas jointly on global markets. The member countries emphasized that Russian gas will be excluded from joint purchases,” the document says.

According to the decision, the EU states will have to purchase through this mechanism 15% of all gas needed to fill their gas storage facilities in 2023.

On the same day, Italy’s Minister for the Environment and Energy Security, Gilberto Pichetto-Fratin, said that 15 EU countries were critical of the proposal to set a ceiling on gas prices presented by the EC.

Also, the financial analyst of the CMS group of companies, Vladimir Sagalaev, told Izvestia that the introduction of a ceiling on gas prices could bring serious problems to Europe. According to him, this measure is aimed at limiting short-term price spikes when they are not associated with global price trends.

Earlier, on November 23, the Financial Times wrote that the price ceiling for Russian gas proposed by the EC does not suit European countries and, most likely, will not be adopted.

On November 22, the EC proposed to introduce a gas price cap of €275 per 1 MWh. According to European Energy Commissioner Kadri Simson, this decision “is not a panacea”, but creates a powerful regulatory tool.

Russian President Vladimir Putin warned in September that if limits were placed on the cost of Russian energy resources, the West would face a complete halt in supplies from Russia.

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