BRUSSELS — The European Commission said on Wednesday it would ask countries to approve broad caps on Russian gas prices as Russia’s invasion of Ukraine has sparked a devastating energy crisis in Europe. It also proposes measures such as mandatory cuts, taxing oil and gas companies, and taxing the price of electricity generated by renewable energy.
The move, outlined by the chairman of the commission, Ursula von der Leyen, is a move in the European Union to quickly tackle the unprecedented energy crisis engulfing the region as Russia cuts its natural gas supply. set the stage for a period of intense and urgent debate on the Many EU member states have their gas and related electricity markets spiraling sharply.
Russia has turned on and off petrol supplies to punish European countries, mainly Germany, for supporting Ukraine, accusing them of widespread chaos due to technical problems and maintenance. there is
EU energy ministers will meet in Brussels on Friday to discuss bloc proposals. Governments in European countries from Germany to Greece spend billions of euros each month to subsidize consumers’ and businesses’ electricity bills, and in some cases he’s five times as much as he did last year.
Controlling electricity prices is not only an economic and social goal, but also a political imperative in Europe. As memories of the ‘yellow vest’ protests in France over energy prices are still fresh, new movements denouncing the rising cost of living are on the rise and, in some cases, continued support for Ukraine against Russian aggression, European politicians have little choice but to take unorthodox and costly measures to appease outraged consumers.
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“We face an extraordinary situation because Russia is an unreliable supplier and manipulator of energy markets,” von der Leyen said in a statement on Wednesday.
She added that the block’s natural gas storage facilities were already 82% full, while Russian gas imports fell from 40% to just 9% of the block’s total. Thirteen of the European Union’s 27 member states face a partial or total shutdown of Russian gas, with the biggest impact being the bloc’s largest economies and those most dependent on Russian gas. You will feel that you are in Germany.
Other European countries also rely heavily on Russia for gas, but gas is not a significant part of the energy mix, making Moscow slightly less vulnerable to a shutdown.
Russian President Vladimir V. Putin has been defiant in the face of the threat of a price cap, calling it another example of “stupidity.”
“All administrative restrictions on global trade will only lead to imbalances and higher prices,” he said Wednesday at an economic press conference in the Russian Far Eastern city of Vladivostok.
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In a speech on Wednesday, von der Leyen said the government urgently needed to intervene in the gas and electricity markets. It’s a concept most EU member states agree with, but disagree about how best to do it.
“We are facing astronomical electricity prices for homes and businesses and huge market volatility,” she said.
In July, the European Commission secured support for a 15% voluntary cut in energy use by next summer. On Wednesday, Ms von der Leyen said she would propose a mandatory cut in peak electricity use.
Since the European electricity market ties the price of electricity to the price of the most expensive fuel (currently gas) used to generate electricity, von der Leyen also urged EU countries to generate electricity. He said he would urge companies to tax them effectively. Non-gas source.
Von der Leyen said the government should use these funds to “help vulnerable people and businesses adapt”, following a model already in place in Greece.
She also said oil and gas companies making huge profits should pay “solidarity contributions” and the government should subsidize state power companies that face large input costs to continue generating electricity. I suggested that we should be able to get it out.
Ivan Necheplenko contributed to the report.