CEO of Gazprom informed that the European Union’s intention to set a price cap would represent a breach of contract| Photo: EFE/EPA/ANATOLY MALTSEV
The attempt to cap Russian gas prices in Europe will mean cutting supplies, warned this Sunday (12) the CEO of state-owned Gazprom, Alexey Miller, to the Russian public TV station.
“We are guided by the signed contracts. A unilateral decision like this would be a violation of the current conditions of the contract, which would imply the cessation of supply”, he said.
Miller recalled that this measure in reaction to the imposition of price ceilings on Russian hydrocarbons is provided for in a presidential decree signed in March by the Russian President Vladimir Putin.
The Russian head of state himself has warned on several occasions that any attempt to limit Russian oil and gas prices would mean that Russia would not export these items and called on the European Union not to violate supply laws and of demand governing international trade.
Among the latest sanctions imposed by the EU on Russia is the commitment to impose a global limit on the price of Russian oil and its derivatives, so that European shipping companies will only be able to transport it from Russia to third countries if sold at a price equal to or lower than that set.
The oil price ceiling will not be a fixed amount, but a variable that puts the price of Russian crude oil below the global market price, thus reducing the revenue that the Russia obtains from the sale of fossil fuels and uses it to finance the war against Ukraine.
This mechanism to punish Russia was one of the topics discussed by US Treasury Secretary Janet Yellen with Eurogroup ministers, with whom she also discussed the need to accelerate economic assistance to Ukraine.
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