BRUSSELS—European Union leaders meet for the second time this month to tackle the urgent issue of how to manage high energy prices resulting from Russia’s invasion of Ukraine and the resulting economic war between Moscow and the West.
EU leaders, together with the U.S., U.K. and other free-market powers, have already set out plans to cap the price of oil from Russia and are now attempting to alleviate the huge economic pressure on the 27-country bloc from Russia’s efforts to squeeze natural gas flows westward.
The EU’s executive arm, the European Commission, this week said it wants the power to impose an emergency cap on the price of natural gas on the bloc’s main trading exchange, part of a package of proposals to cushion consumers from high prices and fill storage tanks next year ahead of winter.
Over recent months, Moscow has progressively restricted deliveries of gas through pipelines to squeeze the supply of gas to EU countries. Last month, flows through the Nord Stream pipelines from Russia to Germany were stopped completely after it was severely damaged by explosions that European leaders have blamed on sabotage. Europeans suspect Russia carried out the attacks and investigations are ongoing.
Sweden’s Prime Minister Ulf Kristersson and the president of the European Commission Ursula von der Leyen in Brussels on Thursday.
Photo:
kenzo tribouillard/Agence France-Presse/Getty Images
The EU summit on Thursday and Friday will continue recent debates over how to intervene in energy markets to relieve the pain of hefty bills for consumers without creating unwanted consequences. Undesirable spillover effects could include saddling governments with massive bills for market-intervention efforts or encouraging more gas use by depressing its price through subsidies.
The commission on Tuesday published intervention proposals that include steps to encourage companies to pool their demand and buy gas together and rules for how gas could be shared across borders…
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