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EU countries failed to agree on gas and oil price cap – DW – 11/24/2022

The energy ministers of the countries of the European Union could not agree on Thursday 24 Novemberabout limiting gas prices. Their emergency meeting in Brussels was marked by major disagreement over the European Commission’s proposal for a mechanism to regulate gas prices.

The ministers plan to meet again, with their next council scheduled for December 13, said Czech Industry Minister Josef Sikela, whose country holds the EU presidency.

At the same time, the meeting participants managed to agree on other measures, including – joint purchases of gas at EU levelthe solidarity of countries in the field of gas supply and the accelerated issuing of permits for the use of renewable energy sources.

The European Commission’s plan was called a joke

November 22The European Commission presented an emergency mechanism to correct the gas market. According to her plan, it should go into effect under two simultaneous conditions. The first is an increase in the price of futures for the coming month to 275 euros per megawatt per hour within two weeks (based on the TTF gas index). Second, the difference in the price of gas in the EU compared to other international indices or on the liquefied natural gas market by more than €58 per megawatt hour within ten days. If both conditions are met, trades at prices above the specified level will not be executed.

Several ministers attending the November 24 meeting complained about the ineffectiveness of this measure, and the representatives of Poland and Spain even called the proposal a joke.

G7 oil price cap proposed by countries perceived differently

The opinions of EU governments do not agree on the issue of limiting the price of Russian oil. The ambassadors of 27 EU countries failed to agree on this on November 24, so negotiations will continue the next day.

The G7 proposes to set the price cap for oil imported from Russia by sea at $65-70 per barrel. Moreover, some EU countries consider it too high, while others – too low. Meanwhile, the price restriction on Russian oil should come into effect on December 5.

“Now there are many bilateral negotiations at a very high level. A meeting of representatives of all EU countries will take place as soon as there is progress. There is no point in having another meeting until there are changes,” Reuters quoted one of the newspapers as saying. say European diplomats. Six of the 27 EU countries opposed the price cap proposed by the G7, diplomats say.

About 70-85 percent of Russia’s crude oil exports come from tankers. By limiting the price of oil transported by sea, the G7 countries expect to ban shipping and insurance companies from receiving shipments of Russian oil if it is sold at a price higher than the set price.

Also see:

Putin vs EU: Who Wins the Gas War?

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By Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org