A special meeting of EU energy ministers was held on September 9 in Brussels, Belgium, to discuss how to deal with soaring energy prices to get through a "difficult winter," Xinhua reported. Around the proposal to put a ceiling on Russian gas prices, there are different opinions and major differences between countries.
The Russian side reiterated on the 9th that such price limit measures will not work, and will eventually only hurt the economies of the countries concerned.
In response to a series of sanctions imposed on Russia after the outbreak of the Russian-Ukrainian conflict, Russia significantly reduced its natural gas supply to Europe. Europe is in the midst of its worst energy crisis in 50 years, and Germany, Europe's largest economy, is at the center of the crisis.
According to the Financial Associated Press, on Saturday (September 10), local time, German Chancellor Schoelz said that if Russia decides to completely stop gas supply, Germany and Europe are ready to bear the consequences. Scholz said Germany was ready to set up terminals for imported liquefied natural gas (LNG) on the country's northern coast.
German Chancellor Scholz Image source: Visually
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Chancellor of Germany: Germany is ready for Russia to cut off gas
Integrated interface news, financial associated press, local time on September 10, German Chancellor Scholz issued a statement saying that if Russia completely stops gas supply, Germany and Europe are ready to deal with this consequence.
Scholz said in the statement that Germany would be prepared for it even if Russia "cut off the supply of gas to a large extent". He added that Germany has already set up gas terminals on the northern coast of Germany to import LNG. "We have stored natural gas and are reactivating the capacity of coal-fired power plants. Early next year, if necessary, we will use the remaining southern nuclear power plants in Germany. Scholz said.
German Economy Minister Habeck has previously said that two of Germany's three existing nuclear power plants will remain on standby until April 2023, in case there is a power shortage this winter, Germany has enough power supply. But the move sparked widespread criticism. The nuclear operator wrote to Habeck saying it was not technically feasible.
According to CCTV news reports, German Chancellor Scholtz said in a previous meeting with European Council President Michel that the Russian-Ukrainian conflict has hit Germany, Russia has now stopped supplying natural gas to Germany, and high energy prices have caused a great burden on the country, on enterprises, and on private consumers. He also thanked the EU for its commitment to developing unified measures to reduce energy prices, saying that Germany will also work to promote the transformation of new energy sources and reduce dependence on traditional energy sources such as natural gas.
In addition, Scholz said that Germany has reacted quickly to the gas supply problem, is building LNG receiving terminals at the fastest speed, and has increased gas imports from countries such as the Netherlands, Belgium, France and Norway, and Germany hopes that EU countries can help each other deal with the crisis.
Michelle said that in order to deal with the energy crisis, three very complex "levers" must be used: reducing consumption, securing the supply of citizens and businesses, and limiting prices. Europe is diversifying its energy supply and reducing its dependence on fossil fuels.
The eu countries are clearly divided
Recently, energy prices in EU countries have been high, the cost of living has continued to rise, and many enterprises and people have been under heavy pressure. According to Interface News, Goldman Sachs Utilities analysts said in a report released last Sunday that by early next year, total energy spending by European households will surge by 2 trillion euros, hitting its peak; Energy spending will then account for around 15% of Europe's GDP.
"Markets underestimate the depth, breadth and structural impact of the European energy crisis," the report reads, "and the crisis will be even more severe than the oil crisis of the 1970s." ”
According to Xinhua News Agency, The European Commissioner in charge of energy affairs, Caderie Simson, said at the meeting on the 9th that the EU must intervene to deal with rising energy prices and prepare for the upcoming "difficult winter".
On July 26, a special meeting of EU energy ministers was held in Brussels, Belgium. This is the meeting site. (Photo by Xinhua news agency reporter Zheng Huansong)
The European Commission has proposed a price cap on Russian gas exports to the EU in order to cut Russian revenues. Under EU rules, proposals for such major decisions require the unanimous consent of 27 member states to pass.
This is a gas price display sign at a gas station photographed in Brussels, Belgium, on March 29. (Photo by Xinhua news agency reporter Zheng Huansong)
Poland, Sweden and other countries have expressed support for this proposal, while others have firmly opposed it. Some of the countries that raised the objection pointed out that because Russia's gas transmissions to the EU have dropped sharply, it is not necessary to set a price cap. There are also some countries that still import natural gas from Russia, worried that the price limit measures will lead to supply cuts off by the Russian side.
Belgian Energy Minister Tina van der Straten said: "Given that there is not as much Russian gas imported into Europe, I don't see any added value in setting a price cap. ”
The Eu plans to reduce its natural gas imports from Russia by about 100 billion cubic meters by the end of this year, a drop of nearly two-thirds. According to the International Energy Agency, the EU will import 155 billion cubic meters of natural gas from Russia in 2021, accounting for about 45% of the EU's total natural gas imports and 40% of total consumption.
A man refuels a car at a gas station in Berlin, Germany, on Sept. 8. (Photo by Xinhua reporter Ren Pengfei)
Austrian Energy Minister Leonore Gwessler also opposed the price limit, saying Austria "cannot support this proposal" at this stage.
Hungary's Minister of Foreign Affairs and Foreign Economic Affairs, Sijaldo Peter, said that the price limit proposal is not in the interests of Hungary and Europe, and if the price limit on Russian gas is imposed, it will lead to the immediate cessation of gas supply by the Russian side.
In response to the movement of the European Union, Russian President Vladimir Putin said on the 7th that the price limit for Russian natural gas was "absolutely a stupid decision" . Once the EU makes a political decision to violate the contract, "if it is not in our economic interest, we will stop supplying everything (energy), gas, oil, diesel or coal, all of which will be stopped".
Russian Foreign Ministry spokesperson Maria Zakharova reiterated this position on the 9th. According to her, Western countries do not understand that limiting the price of energy on Russia will eventually affect their own economies.
Many EU countries have long relied on Russia for energy supplies. Since the ukraine crisis escalated, the European Union has worked with the United States to impose several rounds of sanctions on Russia, but its counter-phasing effect has put the EU in a difficult position. The EU economy has been hit hard, inflation has risen and uncertainty about the economic outlook has increased markedly.
Edited | Cheng Peng du Hengfeng
Proofreading | Wang Yuelong
Cover Image source: Visual China
Daily Economic News is synthesized from CCTV News, Xinhua News Agency, Interface News, and Financial Associated Press
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