Russian Deputy Prime Minister Aleksandr Novak reacted to the decision, stating that Europe’s ceiling price application in natural gas was a political decision.
Speaking to reporters in the capital Moscow, Novak evaluated the agreement of the European Union (EU) countries to apply a ceiling price of 180 euros per megawatt-hour to natural gas yesterday.
Saying that this is not an economic decision, Novak said, “This is just another political decision. Our colleagues are making the same mistake over and over again,” he said.
Referring to a quote by Russian President Vladimir Putin from Nobel Prize-winning economist Milton Friedman, Novak said, “If you want to create a tomato deficit, you charge a ceiling price. “If our colleagues want no natural gas in Europe and want the gas to go to other markets, they will impose a price cap,” he said.
Novak added that they will examine the necessary legal documents for Russia’s response to this decision taken by the EU countries.
Ceiling price of 180 euros for gas from Europe
Due to the Kovid-19 outbreak and the war between Russia and Ukraine, EU countries have recently had to pay high prices for natural gas.
The ceiling price decision that the EU countries agreed on yesterday is that the future gas contract traded at TTF, the Netherlands-based virtual natural gas trading point with the deepest depth in Europe, exceeded 180 euros for 3 working days, and liquefied natural gas (LNG) in Europe in the same period. It will take effect if the megawatt hour price rises above 35 euros in global markets.
The gas futures contract price traded on the TTF rose to 340 euros per megawatt–hour in August, while today it is trading at 106.2 euros.
Speaking to reporters in the capital Moscow, Novak evaluated the agreement of the European Union (EU) countries to apply a ceiling price of 180 euros per megawatt-hour to natural gas yesterday.
Saying that this is not an economic decision,
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