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 the price ceiling for oil from the Russian Federation

The EU states cannot agree on limiting prices for gas and Russian oil.

The energy ministers of the European Union countries on Thursday, November 24, could not agree on limiting gas prices. Their emergency meeting in Brussels was marked by deep 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, Czech Industry Minister Josef Sikela, whose country holds the EU presidency, said.

At the same time, the meeting participants managed to agree on other measures, including joint purchases of gas at the EU level, solidarity between countries in gas supplies and speeding up 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 mechanism for correcting the gas market. According to her plan, it should come into force under two simultaneous circumstances. The first one is an increase in the price of futures for the month ahead 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 in the liquefied natural gas market by more than 58 euros per megawatt/hour within ten days. If both conditions are met, trading operations at prices above the specified level will not be carried out.

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

G7 Oil Price Ceiling Proposed by Countries Differently Perceived

The opinions of the EU governments do not coincide 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 ceiling for oil supplied by sea from Russia at the level of $65-70 per barrel. Moreover, some EU countries consider it too high, while others – too low. Meanwhile, the restriction of prices for Russian oil should come into force 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 convening another meeting until there are changes,” Reuters quoted one of the European diplomats as saying. Six of the 27 EU countries 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 established one.

Source: DW

Earlier it was reported that the United States will report on the proposed price ceiling to the EU ambassadors on November 23, and if they agree, it will be announced on the same evening.

As you know, the G7 countries and Australia have tentatively agreed to set a maximum fixed price for Russian oil at the end of November. In turn, Russia has increased its oil supplies to a record high in an attempt to make more money before sanctions go into full force.

Putin warns of “grave consequences” due to oil price cuts

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The article is in Russian

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