The Gas Exporting Countries Forum (GECF) expressed its opposition to the introduction of “price ceilings” on gas as part of artificial interference in the functioning of markets. This is stated in the organization’s declaration adopted on March 2 following the seventh summit of the heads of state and government of the organization in Algeria.
“Our opposition to any artificial interference in the operation of natural gas markets, including attempts to change pricing and risk management functions, as well as the implementation of politically motivated “price caps”, which can only exacerbate supply shortages in the market and discourage investment needed to meet growing global demand for natural gas. energy resources,” reports the Algerian TV channel Ennahar Online document text.
The declaration notes that it is important to protect gas infrastructure, including cross-border infrastructure, to ensure its reliability and sustainability, and that international cooperation must be strengthened to reduce risks, prevent and protect against natural disasters, technological disruptions and man-made threats.
With the document, the GECF also expressed its determination to promote gas as a flexible and reliable energy source. As indicated, the organization intends to support its pricing based on the price of oil or petroleum products to ensure stable investments in the development of gas resources.
In addition, the GECF condemned unilateral, unprecedented actions and tax measures and expressed opposition to the use of climate change issues to justify measures that hinder investment in gas projects.
The countries also welcomed the accession of Mauritania, Mozambique and Senegal to the organization.
Earlier that day, Russian President Vladimir Putin said in his greeting to the participants of the seventh GECF summit that the principles of fair competition must remain a condition for the stable functioning of the international energy market. He noted that this must be done on a non-discriminatory basis and without any unlawful unilateral barriers or restrictions.
The day before, on March 1, European Commissioner for Energy Kadri Simson said that the ban on gas from the Russian Federation was not included in the 13th package of anti-Russian sanctions due to disagreements among the member countries of the European Union (EU). As the European Commissioner noted, sanctions should not hit those who impose them harder than Russia.
Earlier, on February 15, Simson reported that the alliance countries are not interested in prolonging the agreement on the transit of Russian gas to Europe through Ukraine, which expires at the end of 2024. At the same time, this transportation remains the only option for supplying the resource from the Russian Federation to the countries of Western and Central Europe after the Nord Stream accident.
Meanwhile, in October 2023, Putin pointed out at a plenary session of the “Russian Energy Week” that the economies of European countries are at the “zero mark” because Europeans are overpaying for oil and gas supplies. The head of state added that, in particular, a “price ceiling” has been introduced in relation to these resources from the Russian Federation.
Western countries decided to reduce their dependence on Russian energy resources against the background of the Russian special operation to protect Donbass, the beginning of which was announced on February 24, 2022. However, as a result, a serious energy crisis began in many European countries.
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