Brussels is facing pressure from at least 10 EU countries to implement a cap on gas prices for all suppliers, with some governments warning that singling out Russia could push President Vladimir Putin to cut supplies to Europe completely.
Member states that oppose European Commission president Ursula von der Leyen’s proposal to apply a cap solely on Russian gas imports include Italy, Poland and Greece, according to officials.
The lack of consensus on a gas price cap means that the proposal is likely to be discussed only briefly at an emergency meeting of energy ministers on Friday designed to agree on measures to help consumers and companies through the energy crisis, they said.
Jozef SÃkela, the Czech energy minister who will chair the meeting, said as he arrived at the meeting on Friday: “We are in an energy war with Russia. Putin is trying, by manipulating the market, to break the social peace in our countries, affect our way of life and attack our economies.”
He added that ministers felt the pressure to send “a clear message that will calm down the markets” by the end of the day.
The Kremlin has threatened to stop all deliveries to Europe in case of an EU gas price cap. Russian gas supplies to the bloc have been cut by approximately 80 per cent to about 84mn cubic metres a day since the start of Russia’s full-scale invasion of Ukraine.
“Quite frankly the Russians will probably retaliate on this,” Nikos Tsafos, chief energy adviser to Greek prime minister Kyriakos Mitsotakis, told the Financial Times.
“Europe should have a loud voice and impose a reasonable price,” said Italy’s energy transition minister Roberto Cingolani, saying he too preferred a general cap. “It is a perfect storm against our citizens and companies.”
“Everyone is afraid of the domino effect” if Russia cuts off supply because European states are so interconnected, said a senior EU official. “If you cut off Russian gas only, you infuriate Russia without affecting other suppliers and if you are, say, Portugal who imports no Russian gas, what can you take back to voters?”
Putin’s war in Ukraine has pushed Europe to try to reduce decades-old reliance on Russian energy, exposing the bloc’s lack of short-term alternatives.
Efforts to find new sources, combined with Moscow’s decision to slash pipeline inflows until sanctions are lifted, have driven up European gas prices, inflating electricity prices across the continent and raising the threat of blackouts and rationing this winter.
Officials said enforcing a price cap on Russian gas would probably require unanimous approval from all 27 EU states because it would be treated as a bloc sanction. A general gas price cap could be passed with a qualified majority.
Hungary, Austria and the Netherlands have voiced reservations about an overall cap.
Dutch prime minister Mark Rutte said at a press conference in Rotterdam alongside von der Leyen on Thursday that the Netherlands was taking “a more positive view” on the commission’s proposals for a Russian price cap.
Tinne Van der Straeten, Belgium’s minister for energy, said divisions over gas price caps were mostly “technical issues that can be solved by people [at the commission]”.
Proponents of a limit on the price of all gas imports suggest setting it above current prices in Asia and the US to ensure international traders have an incentive to send shipments to Europe. Kadri Simson, the EU’s energy commissioner, said she was due to meet the Norwegian energy minister on Sunday as part of “ongoing work” to mitigate high prices.
EU ministers are also due to discuss on Friday a windfall levy on electricity producers and measures to reduce energy usage.
Additional reporting by Andy Bounds
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2022-09-09 09:27:11Z
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