Italian minister calls gas price ceiling 'political signal'

Reaching an agreement on the introduction of a ceiling on gas prices was not a foregone conclusion, but it became a "loud political signal" for RUSSIA from Italy and Europe as a whole. This was stated by the Italian Minister of the Environment and Energy Security, Gilberto Pichetto-Fratin, in an interview with Il Sole 24 ore, his words are quoted by the Nova agency.

“The very fact of introducing a price cap mechanism is far from a foregone conclusion, and in this way we responded to Putin’s use of gas and energy as a tool of war, sending a clear and strong political message: Italy and Europe will not be intimidated, and we will be able to protect our citizens,” Piketto-Fratin said.

The minister noted that Italy was the "leader" of the initiative to introduce a ceiling on gas prices, after which it was picked up by other EU countries.

On Monday, December 19, the EU countries agreed on a gas price ceiling at all European hubs in the amount of €180 per megawatt hour (about $2,000 per 1,000 cubic meters). The restriction will take effect on February 15, 2023.

An agreement to limit gas prices in the EU was reached at the fifth emergency meeting of the Energy Community Council of Ministers. As a result of trading on December 19, futures at the most popular gas hub in Europe, Title Transfer Facility (TTF), fell by more than 9% to $1,165 per 1,000 cubic meters. m. As of 15:20 November 20, the price of futures is $1,179 per 1,000 cubic meters. m.

The Kremlin criticized the decision of the European Union. According to the press secretary of the President of Russia Dmitry Peskov, the decision of the European Union violates the market pricing process. According to him, Russia will need time to "thoroughly weigh the pros and cons" in developing response measures.

Russian President Vladimir Putin has said that Moscow will not supply energy to countries that make political decisions that violate the terms of contracts. The HEAD of "Gazprom" Alexei Miller also warned that the introduction of marginal gas prices would lead to the cessation of supplies.