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EU plans to limit Russian gas in retaliation for Ukraine war | Business newsletter


The European Union appears to be on the verge of a new confrontation with Russia over gas supplies.

The bloc has revealed plans to limit the price of Russian gas imports in retaliation for the war in Ukraine and measures to help member states deal with the crisis. squeezing energy.

Ursula von der Leyen, the president of the European Commission, made five proposals on Wednesday, hours after the Russian leader threatened to turn off the faucet on any Western country that wanted to impose limits. energy prices in your country.

She said that Russia has become an “unreliable supplier” after the state-owned Gazprom decided to turn off the faucet on the main Nord Stream 1 pipeline indefinitely last week, adding that the EU’s dependence on Russian gas has decreased significantly since the invasion and reserves are back at 82% across the bloc .

One of the other measures, however, betrayed the dangerous position the bloc continued to face before winter.

Ms. Von der Leyen proposed a mandatory EU-wide reduction in electricity use to save electricity by 10% a month based on a five-year average and an additional 5% during peak price periods.

She also plans to cap sales of air-fueled generators – backed by record raw energy costs – to translate their “surprise profits” into measures to support households. family and company.

Ursula Von Der Leyen
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Ursula von der Leyen says consumers across EU are facing ‘astronomical’ bills

Taxes on fossil fuel companies also apply, she said, along with aid to utility providers struggling under the weight of wholesale prices.

The plans, which would have to be agreed to by member states, could face resistance.

Some EU countries are wary of capping the price of Russian gas in case they pay the price of the dwindling supply they still receive from Moscow.

It follows confirmation that the UK is planning to reduce its own energy bills through a taxpayer-funded relief package. Details are expected this week.

Ms. Von der Leyen explained that the planned ceiling on wholesale prices from Russia is now possible after the bloc reduces its dependence on Russian energy.

“We have increased preparedness and weakened Russia’s grip on our energy supply through a reduction in demand – this allows our joint stockpiles to stay in place,” she said. 82% level”.

“Through diversification, we have increased the supply of LNG or pipeline gas from the US, Norway, Algeria, Azerbaijan and others. For example, Norway is now supplying more gas to the EU. compared to Russia.”

The UK has also been pumping record volumes to the EU via connected devices for months as part of the EU’s push to boost storage.

Von der Leyen said Russian gas accounted for 9% of imports, down from 40% in February before the invasion of Ukraine.



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