Faced with the proposal of Ursula von der Leyen to cap the price of Russian gas, Moscow threatens to no longer sell hydrocarbons to Europeans. Brussels also campaigns for the drop in electricity consumption and the taxation of “superprofits”.
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Faced with the outbreak of gas and electricity prices at the end of this summer, Europeans want to act to protect the purchasing power of households and the competitiveness of companies. No question of adding to the crisis caused by the war in Ukraine a social revolt, as France has experienced it with the “yellow vests”, nor to further increase the risks of a recession which is already looming.
In recent days, the proposals have shot from the four corners of the old continent and, in Brussels, the Commission has tested several scenarios. While European energy ministers must meet on Friday September 9, Ursula von der Leyen, the president of the community executive, presented the work tracks on Wednesday on Wednesday. The discussions promise to be strong, as the energy mixes vary from country to country, but they will allow it to return in the coming days with a more elaborate proposal.
On the gas front, the former Minister of Angela Merkel recalled that the twenty-seven agreed on July 26 to reduce their consumption by 15 % by March 31, 2023 in order to Prepare for a winter without Russian hydrocarbon. Today, stocks are filled up to 82 % of their capacities, which affirms a commissioner, allows them to “face 2.5 months of consumption in cold winter”. At the same time, Europeans have turned to new suppliers (United States, Norway, Algeria, etc.) and accelerated their use of renewable energies.
“Reduce revenues” of the Kremlin
Until now, they have not needed to close factories or ration energy, even if Moscow has drastically reduced its supplies: before the war, the European Union (EU) depended on the Russian gas for 10 % of its energy; Today, this figure fell to 2.5 %. But prices have soared, while Moscow “uses gas as a weapon,” insists Ursula von der Leyen. Drought this summer, which has reduced hydroelectric production, and the difficulties of several nuclear power plants, especially in France, did not help anything.
In this context, Ursula von der Leyen wishes to cap the price of Russian gas imported by the EU and “reduce the revenues” of the Kremlin, which are used to “finance this excruciating war against Ukraine”. Vladimir Putin, Wednesday morning, warned: if such arrangements were to be taken, “we will not provide gas, oil, coal, domestic fuel oil – we will not provide anything”. The Commission nevertheless decided to assume this risk, since Europeans almost succeeded, in six months, to do without Russian hydrocarbons.
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