Ukrainian President Volodymyr Zelenskyy has told Europeans to expect a difficult winter as Russia indefinitely shuts down its main pipeline that supplies gas to the continent.
Core items:
- Ukrainian President Volodymyr Zelenskyy says Russia is preparing a “decisive energy strike against all Europeans”.
- European Union energy ministers are meeting on September 9 to discuss a price cap on imported gas
- After announcing billions of dollars in measures to deal with the disruption, Germany says Russia is “no longer a reliable energy partner”.
Gas and power buyers brace for more price pain when markets open on Monday after Russia announced one of its key gas pipelines to Europe will remain closed indefinitely.
“Russia is preparing a decisive energy attack on all Europeans this winter,” said Zelenskyy.
Meanwhile, Russia said Western sanctions imposed over its invasion of Ukraine and technical issues caused the power disruptions.
Gas prices in Europe have risen by almost 400 percent since Russia invaded Ukraine.
European countries that have provided Ukraine with diplomatic and military support have accused Russia of arming its energy supply.
Your energy ministers will meet on September 9th to discuss how to stem rising energy prices.
Energy ministers will also examine options – including a price cap on imported gas, a price cap on gas used in power generation or temporarily removing gas-fired power plants from the current EU electricity price-fixing system – a document shows.
According to the document, prepared by the Czech Republic, which holds the EU’s rotating presidency, it is also considering offering urgent “pan-European credit line support” to energy market participants facing demands for very high margins.
The document reiterated proposals contained in a draft Commission communication last week for EU-wide cuts in electricity consumption and an electricity price cap for non-gas generators.
Moscow said last week it would keep the Nord Stream 1 pipeline, its main gas route to Germany, closed, and the G7 countries announced a planned price cap on Russian oil exports.
The Kremlin said it will stop selling oil to all countries that have introduced the cap.
Read more about Russia’s invasion of Ukraine:
Leader says Russia is ‘not reliable anymore’
Chancellor Olaf Scholz announced on Sunday that the government would use windfall tax revenues to lower end-user prices for gas, oil and coal.
The measures are part of a €65 billion package to help citizens and businesses struggling to cope with rising inflation.
“Russia is no longer a reliable energy partner,” said Scholz.
Spacebar to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.listenDuration: 8 minutes 8 seconds8m Russia halts gas exports to Europe indefinitely.
Former Russian President Dmitry Medvedev accused Germany of being “an unfriendly country” and an enemy of Russia.
“In other words, it has declared a hybrid war on Russia,” he said.
Finland and Sweden have announced plans to offer billions of dollars in liquidity guarantees to energy companies to prevent companies from being toppled by rising collateral requirements.
“Margin requirements for futures contracts have increased in line with increased daily price volatility,” the EU document reads.
“This makes it almost impossible for more and more companies to keep their hedging positions open, triggering their exit from the futures markets.”
Spacebar to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.watchDuration: 1 minute 35 seconds1 m 35sThe UN nuclear guard arrives at the Ukrainian power plant under heavy fire.
Reuters
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