Russia's Gazprom says it will stop gas supplies to Europe if EU imposes price cap

16 October 2022, 08:05 PM
Gazprom says it will stop gas supplies to Europe if EU imposes price cap (Photo:Gazprom / Telegram)

Gazprom says it will stop gas supplies to Europe if EU imposes price cap (Photo:Gazprom / Telegram)

Russia has threatened to stop gas supplies to the European Union if member states decide to introduce a price cap on natural gas, the head of Gazprom Alexei Miller, said on Oct. 16.

He stated that the introduction of a price limit for Russian gas, which the EU is considering as part of sanctions in response to the war unleashed by Russia against Ukraine and provoking an energy crisis, allegedly violates the terms of contracts.

“We are following the contracts that have been signed,” Miller said. “Such a unilateral decision is, of course, a violation of the essential terms of the contract, which entails the cessation of supplies.”

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Earlier, Russia also threatened to cut off oil supplies to countries that introduced price caps.

The EU countries have been discussing for several weeks caps on the price of gas that Russia supplies, but have not agreed on this yet.

Next week, Brussels will unveil proposals to start joint gas purchases within a few months and develop an alternative gas price benchmark as part of efforts to tame volatile energy prices.

After the start of the Russian full-scale war against Ukraine on Feb. 24, 2022, the EU, as part of its sanctions, imposed an embargo on Russian oil (except for pipelines) and coal.

However, due to the bloc’s significant dependence on Russian gas, the EU countries haven’t yet given up taking supplies from Russia.

With current gas prices nearly 90% higher than a year ago, most EU countries are keen to set a price cap for the fuel, but it is difficult for them to agree on what form this should take – be it capping the price of all gas, or pipeline gas, or only gas used to generate electricity.

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