And the European Union had previously considered its quest to set a ceiling on gas prices, as aimed at containing the energy crisis that swept the economy, after 15 European countries, including France, Belgium, Italy, Spain and Poland, called for that mechanism.
Since the start of the military operation in Ukraine, Moscow has reduced gas supplies to Germany before stopping them in early September, and those imports represented 55 percent of the country’s supplies before the conflict.
Regarding the date of agreement on setting a ceiling for gas prices, European Union spokesman Luis Miguel Bueno said in statements to “Sky News Arabia” that the leaders of the European Union agreed this month to establish a temporary mechanism to limit the price of gas used to produce electricity, at a time when The energy ministers of the member states discuss the details of these measures.
Bueno added, “We must not forget that these measures are unprecedented and have an impact on the European single market. For example, this mechanism must be accompanied by guarantees to avoid an increase in gas consumption.”
It is likely that the energy ministers of the bloc’s countries will reach a final agreement before the European leaders’ summit in December, according to “Bueno.”
However, German Chancellor Olaf Scholz has previously warned that imposing a ceiling on gas prices would be counterproductive, while making clear that Berlin is freeing itself from dependence on Russian gas and working to reduce energy prices.
Russian President Vladimir Putin had already threatened to permanently halt energy exports to Europe if this plan was agreed upon.
A current crisis..and alternative sources
In turn, the Director of Global Macroeconomic Research at the British National Institute for Economic and Social Research, Corrado Macchiarielli, confirmed to “Sky News Arabia” that some estimates indicate that up to 70 percent of Russian gas destined for Europe can be replaced with alternative sources, which prevents the occurrence of an accident. deficiency for about six months.
“This will be critical as winter approaches, however, a solution could mean cross-border cooperation and expansion of solidarity agreements to share gas across EU borders where there is the capacity to produce more gas as for example in the Netherlands,” he said.
And based on the center’s latest forecasts for the global economy, if Russian gas is stopped as of the third quarter of this year, the balance of risks on GDP growth in Europe will remain significantly downward, according to “Macchiarilli”, who added: “This reflects the direction of We looked at greater risks from higher European energy prices and more trade restrictions on Russia.”
Norway, which has become the main supplier of natural gas in Europe, has expressed doubts about setting a ceiling for gas prices, which was proposed by the majority of the European Union.
Hungary, Slovakia and Austria, which import large quantities of gas from Russia, also stood against imposing a ceiling on Russian gas for fear of a Russian response by stopping supplies.
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