The expert spoke about the possible reaction to the introduction of a limit for gas prices in the EU


04 September 2022

The introduction of a price limit for Russian gas in Europe may be negatively perceived by other suppliers, they are unlikely to want to reduce the cost of supplies when the price ceiling is set, Maria Belova, research director at Vygon Consulting, shared her opinion with RIA Novosti.

 A European Commission spokesman said last week that it continues to explore ways to curb energy prices, including setting a price cap for gas from Russia.

 «I think it's the other way around,» a Vygon analyst said when asked if such measures could contain the soaring gas prices in the region.

 “Moreover, such an action may be negatively perceived by gas suppliers who are in no hurry to help Europe anyway. Norway reacted negatively to the call to lower gas prices, Qatar did not sign a contract with Germany on the terms of the Germans. And they are unlikely to like the idea in share the fate of Gazprom in the future,” she added.

 At the same time, in accordance with the REPOWER EU plan published in March of this year, by 2030 the import of Russian natural gas will be reduced to zero, Belova recalled.

 Stock prices for gas in Europe have been growing since the spring of last year and continue to update their historical highs. The price record of $3,892 per thousand cubic meters was reached on March 7. Gas quotes a few days earlier for the first time since the beginning of spring crossed the threshold of $3,500, but then dropped again – to the level of $2,500. This is several times higher than last year's prices, when gas prices were already at a record high.

 The European Commission (EC) expects gas prices in Europe to remain elevated this winter and fall in 2024-2025. This was announced on Thursday by the representative of the EC Tim McPhee at a briefing.

 “We expect prices to remain at an elevated level in the coming winter, they will fall again in 2024-2025. But they are subject to some fluctuations,” he said of the prices for “blue fuel”.