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Gazprom warns it will cut off gas supplies to Europe if price caps are introduced

Gazprom is a Russian gas company founded in 1989. | Font: AFP

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Attempt to introduce a price cap gas in Russian in Europe will mean supply cuts, the CEO warned GazpromAlexey Miller, on Russian public television.

“We are guided by signed contracts. Such a unilateral decision is a violation of the existing terms of the contract, which implies the termination of supplies,” he said.

Miller recalled that this step in response to the introduction of marginal prices for Russian hydrocarbons is provided for by a presidential decree signed in March last year by Russian President Vladimir Putin.

The head of the Russian state himself has repeatedly warned that any attempt to limit the prices of Russian oil and gas would mean that Russia will not export these goods and urged the EU not to violate the laws of supply and demand that govern international trade.

Will there be a price ceiling for Russian gas?

Among the latest sanctions against Russia The European Union is under an obligation to introduce a global cap on the price of Russian oil and its derivatives in such a way that European shipping companies will be able to transport it from Russia to third countries only if it is sold at a price equal to at least a set amount.

price limit oil will not be a fixed amount, but a variable that will bring the price of Russian crude oil below the world market price, thereby reducing its income. Russia to sell fossil fuels and which he uses to finance the war against Ukraine.

This punishment mechanism Russia was one of the topics Yellen discussed with Eurogroup ministers, with whom she also discussed the need to speed up economic aid Ukraine.

(As reported by EFE)


Source: RPP

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