The attempt to impose a cap on Russian gas prices in Europe will involve cutting off supplies, the CEO of Gazprom, Alexei Miller, on Russian public television. “We orient ourselves in the signed contracts. A unilateral decision such as this is a violation of the current terms of the contract which involves the cessation of supplies”he claimed.
Miller recalled that this step in response to the imposition of price caps on Russian hydrocarbons is provided for in a presidential decree signed last March by Russian President Vladimir Putin. The Russian head of state himself has repeatedly warned that any attempt to limit the prices of Russian crude oil and gas will mean that Russia will not export these items, and called on the EU not to violate the laws of supply and demand that govern international trade.
More sanctions against Russia, such as limiting the price of gas
Among the latest sanctions imposed on Russia by the European Union is a commitment to impose an overall limit on the price of Russian oil and its derivatives, so that European shipping companies will not be able to transport it from Russia to countries third parties only if it is sold at a price equal to or less than the established price
The oil price cap will not be a fixed amount, but a variable that puts the price of Russian crude oil below the world market price, thereby reducing Russia’s revenue from the sale of fossil fuels and that it used to finance the war against Ukraine. This mechanism of punishing Russia was one of the topics discussed by Yellen with the ministers of the Eurogroup, with whom she also discussed the need to accelerate economic aid to Ukraine.
Character font: The Energy Diary
Reference article: https://elperiodicodelaenergia.com/gazprom-amenaza-a-europa-con-cut-el-suministro-si-se-topa-el-precio-a-su-gas/