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The Guardian: The European Commission refused to impose a ceiling on Russian gas prices

September 13, 2022
in Daily News
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The European Commission has abandoned the idea of ​​imposing a price ceiling on Russian and any imported gas into the European Union. There is no unanimity of opinion in the political bloc on this issue: a number of countries are categorically against the ceiling on Russian gas prices, some countries do not support the introduction of directive restrictions in principle, and some countries, on the contrary, support it. In connection with the divided position, the EU executive body decided to abandon this mechanism and is now considering another one – to redistribute the excessive oil and gas revenues of its companies in favor of the affected population and business. The British The Guradian writes about this with reference to the draft statement of the head of the European Commission Ursula von der Leyen, the final version of which will be presented on Wednesday.

The Netherlands and Denmark opposed the price ceiling for all gas imports to Europe. Large consumers of Russian gas, Hungary, Slovakia and Austria, opposed the price ceiling for Russian gas. Germany was ready to support the price ceiling for Russian gas, although it was afraid of disagreements within the EU. At the same time, Russian gas consumers feared that Russian President Vladimir Putin, if this mechanism was adopted, would refuse supplies altogether. Approximately 12 EU members, including France and Poland, have agreed to impose price ceilings on all gas imports.

After considering the positions of the parties, the European Commission came to the conclusion that it makes no sense to try to introduce a ceiling on gas prices, so the executive body proposed to focus on other ways to solve energy problems. Now the EC's basic solution is to take the windfall profits of energy companies through higher taxes and to impose price caps on electricity by green energy producers. The proceeds will be reallocated to help households and industries.

The European Commission justifies the change in the current tax legislation by “unpredictable non-market factors caused by the war in Ukraine.” Thus, the EC considers these incomes not received as a result of honest economic activity, calling them "excessive and unexpected". The EC calls the tax itself a “solidarity contribution”. His rate is still unknown, the newspaper notes. Also, the appeal of the head of the European Commission refers to the need to develop a new plan to reduce energy consumption, which should help the unit survive the winter.

Previously, Bloomberg estimated the losses of the European Union from reducing dependence on Russian gas at an “astronomical amount”. At the same time, the agency acknowledged that Europe's current stocks may already be enough to get through a relatively warm winter, but severe weather conditions could lead to harsh reduction methods, including rolling blackouts in some countries. The gas shortage in the EU arose as a result of the conflict with Moscow against the backdrop of the war in Ukraine. European politicians insist that Russia is using gas as an instrument of pressure on Europe to reduce support for Ukraine. Moscow denies these accusations, explaining the collapse of gas supplies via Nord Stream as the consequences of sanctions, under which it is impossible to service the pipeline.

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