Price cap for everyone
Brussels appears to face resistance to broadening gas price limits beyond Russian supply, a topic highlighted by the Financial Times. The report notes that at least ten EU member states favor caps on prices from all gas suppliers, driven by concerns that targeting only Russian gas could provoke a Kremlin response. The piece identifies Greece, Italy, and Poland among those advocating a general constraint, while explaining that a universal cap requires unanimous approval from all 27 EU members, though a qualified majority might move a broader limit forward. Hungary, Austria, and the Netherlands remain opposed to any form of price restriction.
In the interview, Nikos Tzaphos, chief energy adviser to Greek Prime Minister Kyriakos Mitsotakis, cautioned that Russia would likely retaliate. Italy’s ecologically focused minister Roberto Cingolani also supported general restrictions and called for a reasonable price cap. An anonymous EU official suggested that many fear a domino effect if gas supplies were cut, given how closely linked European economies are.
The argument against limiting only Russian gas centers on the potential for Russia to react, while it is noted that other suppliers would remain unaffected. Critics point out that voters in countries not dependent on Russian gas could question the utility of such a measure, unless the approach encompasses all suppliers. Proponents of a universal cap propose setting price floors above current levels in Asia and the United States to incentivize continued European gas supplies from global producers.
“The Giant Problem”
On September 7, European Commission President Ursula von der Leyen announced a plan to propose a ceiling on Russian gas prices to the European Union Energy Council at a Brussels press conference. The goal is to enable rapid implementation once member states align, according to reports in Politico. The proposal envisions setting the price of Russian gas in the EU at about 50 euros per megawatt hour, roughly 520 euros per thousand cubic meters, subject to agreement among the community’s governments.
EU energy ministers are also expected to discuss at an informal Brussels meeting measures to cut electricity consumption by 10 percent overall and 5 percent during peak periods, alongside a cap on electricity prices with a benchmark of 200 euros per megawatt hour for all generation types aside from gas. In related remarks, Belgian Prime Minister Alexander De Croo warned that the European economy could stall if the current energy crisis persists, stressing the need for swift action to protect both industry and households.
De Croo underscored the risk of deindustrialization and social unrest if the crisis continues, urging a broad price cap on gas trade within the bloc. He argued that only an immediate intervention could reassure the estimated 450 million Europeans that policymakers are actively safeguarding both people and businesses. He noted that gas trading has surged to ten times the five-year average, making a timely decision essential to avoid lasting damage to the economy and livelihoods. Emphasizing urgency, De Croo warned that waiting would only reduce the chances of stabilizing the energy market in the coming months.
He endorsed extending price restrictions across all gas markets rather than singling out Russian imports, pointing to statements from Vladimir Putin that Russia could suspend gas sales. The concept involved a temporary, dynamic restriction paired with a price premium linked to Asian benchmarks, a strategy intended to give Europe time to rethink electricity pricing mechanisms ahead of any future structural changes. The Belgian leader concluded that winter gas and electricity supply should be secure, while acknowledging that any European country facing outages would represent a broad challenge for the entire bloc.