EU plans to cap Russian gas price as Putin issues warning | European Union News


‘We should reduce Russia’s revenues which Putin makes use of to finance this atrocious struggle in Ukraine,’ European Fee President Ursula von der Leyen advised reporters on Wednesday.

The European Union has proposed a value cap on Russian fuel simply as Russia’s President Vladimir Putin warned that such a transfer would trigger Moscow to chop off all vitality provides.

Europe is in the course of an escalating standoff with Russia that might drive up already-soaring European fuel costs additional prematurely of the chilly months forward.

Brussels accuses Moscow of weaponising vitality provides in retaliation for Western sanctions imposed on Moscow over its invasion of Ukraine.

Russia continues to insist that the sanctions are inflicting the availability issues, which it places all the way down to pipeline faults.

On Friday, Russia’s Gazprom fully suspended gas provides by means of the Nord Stream 1 pipeline to Germany after it mentioned it discovered an engine oil leak throughout upkeep work.

Rising tensions

Putin has warned that contracts could possibly be discarded within the occasion of value caps.

“We is not going to provide something in any respect if it contradicts our pursuits,” Putin mentioned on Wednesday at an financial discussion board in Vladivostok.

“We is not going to provide fuel, oil, coal, heating oil – we is not going to provide something,” Putin said.

Europe often imports about 40 % of its fuel and 30 % of its oil from Russia.

Regardless of the warnings, the EU is planning to press forward with a value cap on Russian fuel and likewise a ceiling on the worth paid for electrical energy from turbines that don’t run on fuel.

“We are going to suggest a value cap on Russian fuel … We should reduce Russia’s revenues which Putin makes use of to finance this atrocious struggle in Ukraine,” European Fee President Ursula von der Leyen advised reporters.

EU vitality ministers are resulting from maintain an emergency assembly on Friday.

The Netherlands, which has constantly opposed a fuel value cap, would help one which targets Russian fuel, a supply with information of the matter advised the Reuters information company on Wednesday.

Nevertheless, a Czech minister mentioned earlier it needs to be taken off the agenda for Friday’s assembly. The Czechs are serving to to information discussions as holders of the EU’s rotating presidency.

Curbing manufacturing and spending billions

On Wednesday, Ukrainian President Volodymyr Zelenskyy thanked the EU for confirming 5 billion euros ($4.97bn) in macro-financial assist. He additionally added that the nation wanted a “full-fledged” programme of financing from the Worldwide Financial Fund.

Zelenskyy made the feedback in a Twitter submit following a dialog with German Chancellor Olaf Scholz, who he mentioned mentioned plans to additional strengthen Ukraine’s defence capabilities.

Europe can be spending billions of {dollars} in help to cushion shoppers from the influence of surging vitality prices.

New British Prime Minister Liz Truss is predicted to unveil her plans on Thursday, with the invoice from a value freeze forecast to rise in the direction of 100 billion kilos ($115bn).

Many European firms have already been compelled to chop again on manufacturing.

Eurelectric, a physique representing the European electrical energy trade, criticised plans for an EU cap of 200 euros per megawatt hour on the worth of electrical energy from turbines that don’t run on fuel.

“The basis reason behind the issue is a scarcity of fuel provide and our dependancy to imported fossil fuels,” mentioned Kristian Ruby, secretary common of Eurelectric. “Governments ought to search to deal with this quite than resorting to distortive, advert hoc interventions within the electrical energy market.”

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