The EU did not agree on a price ceiling for gas and oil

The EU did not agree on a price ceiling for gas and oil
The EU did not agree on a price ceiling for gas and oil


The EU did not agree on a price ceiling for oil from the Russian Federation

On Thursday, the European Union states were unable to agree on limiting the prices of gas and Russian oil.

On Thursday, November 24, the energy ministers of the countries of the European Union could not agree on gas price limits. Their emergency meeting in Brussels was marked by deep disagreements over the European Commission’s proposal for a gas price regulation mechanism.

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

At the same time, the meeting participants managed to agree on other measures, including joint gas purchases at the European Union level, solidarity of countries in gas supply issues, and acceleration of the issuance of permits for the use of renewable energy sources.

The plan of the European Commission was called a joke

On November 22, the European Commission presented an emergency gas market correction mechanism. According to her plan, it should take effect under two simultaneous circumstances. First: an increase in the futures price one month ahead to 275 euros per megawatt per hour for two weeks (based on the TTF gas index). Second: the divergence of the gas price in the EU compared to other international indices or in the market for liquefied natural gas by more than 58 euros per megawatt hour for ten days. In the presence of both conditions, trading operations at prices higher than the indicated level will not be carried out.

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

Countries perceive the oil price ceiling proposed by the G7 in different ways

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

The “big seven” propose to set the price ceiling for oil delivered by sea from Russia at the level of 65-70 dollars per barrel. Moreover, some EU countries consider it too high, while others consider it too low. Meanwhile, the price cap on Russian oil should come into effect on December 5.

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

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

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The article is in Ukrainian

Tags: agree price ceiling gas oil

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