EU Abandons Price Cap

ER Editor: Despite all the EU’s mixed messaging about why it wants to impose a price cap on Russian natural gas, the bottom line is that Russia won’t be able to make as much as it could for its energy elsewhere, i.e. it thus has no reason to sell into Europe. Obviously, some smart people in the political class want to avoid this.

According to an article linked to below, the 10 member states opposing this cap include the Netherlands, Italy, Greece, Poland and other countries to the east of Europe. This must include Hungary.


EU Scraps Price Cap On Russian Natural Gas

Tyler Durden's Photo TYLER DURDEN

Authored by Tsvetana Paraskova via

The European Commission is walking away from the idea of proposing a price cap on Russian gas as part of measures to tackle the energy crisis, the Guardian reported on Tuesday, citing a leaked draft document of proposals it had seen.

The draft document, expected to be unveiled on Wednesday, contains no reference to any price cap on gas, be it Russian or not, according to the leak viewed by the Guardian.

Last week, the European Commission said it would propose a mandatory target for the EU to cut power consumption at peak hours, a revenue cap on electricity producers and fossil fuel companies, and a price cap on Russian gas as immediate measures to save the European gas and electricity markets and help vulnerable consumers.

“We will propose a cap on Russian gas. The objective here is very clear. We must cut Russia’s revenues which Putin uses to finance this atrocious war against Ukraine,” European Commission President Ursula von der Leyen said last Wednesday.  

However, EU member states remain deeply divided over a price cap on Russian gas, with at least ten out of 27 governments reportedly opposing such as move over concerns that Putin might retaliate with a complete halt of gas supply to the whole of Europe. Germany, Europe’s biggest economy and the most affected EU member by the now-shut Nord Stream pipeline, isn’t supportive of the plan, either.

Another group of EU countries, which include France and Poland, pushed for a price cap on all imported gas. However, the European Commission is wary of this idea because a cap would hurt Europe’s ability to draw in large volumes of LNG if prices elsewhere are higher. 

The gas price cap is thus unlikely to make it in Wednesday’s proposal from the Commission, although the draft is still subject to changes, according to the Guardian.

But the EU executive arm is said to be pressing forward with a cap on revenues for nuclear and renewable power producers and a levy on the extra profits of the fossil fuel companies, including the refining sector, sources with knowledge of the discussions told Bloomberg on Tuesday.




The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)


Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.


Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.


Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.

Be the first to comment

Leave a Reply

Your email address will not be published.