Gazprom: Imposing a ceiling on the price of Russian gas leads to a halt in supplies 2022
Russian gas company Gazprom CEO Alexei Miller said that plans to impose a cap on prices for gas exports will lead to a halt in supplies, echoing a similar threat from President Vladimir Putin.
Russia's war with Ukraine has prompted European Union customers to reduce their purchases of Russian energy, while the bloc and the group of seven are trying to impose a price cap on Russian oil and gas.
Miller stated in statements aired on state television on Sunday, October 16, 2022, "Such a unilateral choice is, of course, a violation of current contracts, which will lead to a suspension in deliveries."
Putin threatened to halt energy shipments last month if a price cap was implemented.
Cutting off supplies from Russia, the world's largest exporter of natural gas and the second-largest exporter of crude oil after Saudi Arabia, will upset world markets and increase energy costs for economies.
Precautionary measures
In turn, EU Energy Commissioner Kadri Simson said that the package, prepared by the Union to limit the sharp rise in natural gas prices, should refrain from using more fuel given the unprecedented supply issue.
The Bloomberg News Agency reported on Sunday that Simpson said that the European Commission is scheduled to propose a set of measures next Tuesday in order to mitigate Russian supply cuts' effects on businesses and consumers".
While more than half of the bloc's 27 member states are pushing for a cap on gas prices, they are at odds over how to achieve this goal.
The challenge for the EU is to rein in costs, while at the same time preventing damage to the common market and increasing fuel demand, at a time when it wants to reduce its dependence on Russia and ensure adequate gas storage for the next heating season.
The leaders of the governments of the EU member states will then discuss the energy crisis during the summit scheduled for October 20-21 in Brussels.