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EU Considers Gas Price Cap in Russian Supply Disruption Scenario

  • EU Commission drafts road map on energy-market intervention
  • Russian invasion of Ukraine exacerbated EU energy price spikes
Pipework at a gas pre-treatment unit in the Lensk district of the Sakha Republic, Russia.

Pipework at a gas pre-treatment unit in the Lensk district of the Sakha Republic, Russia.

Source: Bloomberg

The European Union could cap natural-gas prices to avoid “unbearably high” costs if Russia, the region’s biggest supplier, significantly limits or cuts off the flow.

The European Commission is mapping out energy-market intervention measures as part of a package to replace Russian gas imports after the invasion of Ukraine. It is set to recommend agreeing on common principles to prepare for a wider disruption and a regional or EU-wide emergency, where gas markets can no longer match supply and demand, according to a draft document seen by Bloomberg News.