The European Commission proposes to limit Russian gas prices at €50/MWh – Politico

The European Commission proposes to limit the price of Russian natural gas, fixing it at a level no higher than €50/MWh or $536/tcm. This is reported by Politico with reference to a European Commission document.

Note that this is almost five times cheaper than the current market price. Such a move would be a gamble, the document warns: “The EU would have to be ready to give up immediately Russian gas” if Moscow retaliated by cutting all supply, although ongoing cuts make that risk lower by the day, it adds.

Recall that the European Commission has prepared for the EU countries two options for limiting prices for Russian gas. The first option involves the introduction of a ceiling, or the establishment of a single buyer. The second is the division of the EU countries into red and green zones.

According to the first option, the EU countries need to introduce a maximum price limit for all gas imported from Russia or appoint a single buyer of Russian gas who will negotiate prices for the energy resource.