EU calls for price cap on Russian gas imports

BRUSSELS, Sept 29 (KUNA) -- The European Union Energy Commissioner Kadri Simson said the EU is negotiating with "reliable suppliers of pipeline gas" to reduce gas prices and is also considering a limit on gas prices imported from Russia.
"Europe is facing energy blackmail by Russia, and global demand for gas is higher than supply. We are negotiating with our reliable suppliers of pipeline gas. If this doesn't bring results, then a price cap is possible," Simson said in a statement on Thursday on the eve of an extraordinary meeting of EU energy ministers in Brussels.
"I strongly believe we need a price cap on all Russian gas imports, at a level that still makes it attractive for them to export to Europe. Together, these steps will reduce the cost of gas imports," she noted.
Simson clarified that "this cap has to be set at such a level that it does not increase overall gas consumption. "The price signal must remain. Why? Because if more gas is used, and bought on a tight global market, this will push the prices up further," she added.
Meanwhile, the EU energy ministers tomorrow will discuss a non-paper prepared by the European Commission on emergency intervention to address high energy prices.
The total Russian gas supplies to the EU sharply declined by 39 bcm (37 percent) over January - August. This is due to the sharp decline in Russian gas supplied by pipeline. At the same time the LNG imports from Russia to the EU, have increased, says the non-paper. (end) nk.gb