Europe Quickly Scratches Plan for Price Caps on Russian Gas after Putin Threats — They Should Have Listened to Trump
Russia continues to show Europe who’s boss.
In 2018 during his speech to the UN General Assembly President Donald Trump lodged a warning to Germany about their country’s reliance on Russian energy.
The German delegation laughed on camera at the remarks.
In June Russia announced it would reduce natural gas flows through a key European pipeline by roughly 40% into Germany.
This was after Germany sided with Ukraine in the war with Russia.
But Russia was not yet finished.
In July Russia announced it was cutting gas to Germany and Europe by another 20%.
Earlier this month natural gas prices reached a new record high in Europe. And Russia announced up to a 60% price increase in the coming cold weather months.
JUST IN – Natural gas prices in Europe rise to a new record high. pic.twitter.com/DROUHrkuL4
— Disclose.tv (@disclosetv) August 16, 2022
In August Russian state-controlled energy giant Gazprom announced they were shutting down the flow of natural gas to Germany due to “routine maintenance” at a compressor station.
“How In The Name Of God”: Shocked Europeans Post Astronomical Energy Bills As ‘Terrifying Winter’ Approacheshttps://t.co/Ofm0nRetQl
— Jack Posobiec (@JackPosobiec) August 31, 2022
Last week Russia again stopped the flow of natural gas to Germany.
Russia’s Gazprom PJSC said its key gas pipeline to Europe can’t reopen as planned on Saturday as a new technical issue has been discovered. Simon Casey reports on “Balance of Power.”
This was after German officials (G7) tried to pass a price cap on Russian gas.
And now that Russia is threatening to shut off gas completely to Europe the EU is dropping plans for a price cap on Russian gas.
(Via Reuters) – The EU has dropped plans to cap the price it pays for Russian gas.
Energy ministers from the bloc met Friday (September 9) in Brussels. They scrapped plans for the cap after the idea failed to win broad support.
Member states in central and eastern Europe who still get gas from Russia feared retaliation by Moscow. Russian President Vladimir Putin had said he would cut off supplies altogether if a cap was imposed.
However, ministers did agree to claw back revenues from some power producers and will use the money to curb consumer bills. European energy prices are typically set by gas plants. That leaves generators using nuclear, wind or coal raking in revenue, as their running costs haven’t risen as much or at all.
On Friday, some EU nations also argued in favor of a general cap on all gas imports. However, European energy commissioner Kadri Simson said any such move would be risky:
“The general price cap, including LNG imports, could present a security of supply challenge, because the LNG market is a global market. We are not among the three biggest LNG-importing regions or countries, and there is very strong competition in the LNG market and right now it is very important that we can replace the decreasing Russian volumes with alternative suppliers.”
The EU windfall plan will now be fleshed out in the coming days, with another meeting of energy ministers seen possible later in the month. (read more)