Leaders from European Union countries will agree at a summit this week to jointly purchase gas, liquefied natural gas (LNG) and hydrogen ahead of next winter, according to a draft of their summit statement.
#Russia #Ukraine #Energy #OIL #Embargo #sanctions #Putin
The invasion of Ukraine by Russia, Europe's top gas supplier, has caused energy prices to soar to record highs and put the 27-nation EU bloc on a mission to cut Russian gas use this year - a move that will require a jump in imports from other suppliers, such as Qatar and the United States.

"With a view to next winter, member states and the Commission will urgently... work together on the joint purchase of gas, LNG and hydrogen," EU leaders will say following a summit on Thursday and Friday (March 24 and 25), according to a draft summit statement seen by Reuters ahead of the meeting.

The European Commission last year proposed a system for EU countries to jointly buy strategic stocks of gas, which some members including Spain had called for as a way to provide a buffer against potential supply disruptions.

Fears of supply shocks have grown since Russia launched what it calls "a special military operation" in Ukraine.

Russia supplies 40 per cent of EU gas. Russia also supplies about 30 per cent of the EU's crude oil imports.

Brussels has said it will help countries kick-start joint gas buying this year, and is expected to propose rules this week requiring countries to fill gas storage to 90 per cent ahead of winter each year.

EU storage is currently at 26 per cent of capacity. The draft statement said countries agreed to coordinate measures to fill storage and start doing so "as soon as possible".

Leaders will also consider fresh measures to cushion consumers from soaring energy prices, and discuss how to potentially "optimise" the functioning of energy markets.

They will ask the Commission to take "necessary initiatives" to do this, according to the draft statement.

European gas prices had already risen in the months leading up to the invasion, prompting governments to spend billions on tax breaks and subsidies to shield citizens from the costs.

Finding a joint EU response, however, has proved difficult. EU countries are largely responsible for their national energy policies, and disagree on whether EU-wide action is needed to tame prices.

Spain, Belgium, Portugal, Italy and Greece are among those calling for intervention in Europe's energy markets, to cap prices or decouple the price of electricity from the soaring price of gas.

States including Germany, the Netherlands and Denmark oppose market intervention, and warn of causing disruptions to energy markets that could undermine investments in clean energy.

Meanwhile, the draft statement showed that EU leaders intend to set up a “trust fund” for Ukraine as it battles Russia’s invasion and to help it rebuild after the war.

“Bearing in mind the destruction and enormous losses brought upon Ukraine by Russia’s military aggression, the European Union is committed to provide support to the Ukrainian Government for its immediate needs and, once the Russian onslaught has ceased, for the reconstruction of a democratic Ukraine,” the draft conclusions for the meeting said.

“To that end, the European Council agrees to set up a Ukraine Solidarity Trust Fund and calls for preparations to start without delay.” The draft, still under negotiation, gave no further details on the planned size or working of the fund.

It called for “an international conference to be organised in due time to raise funding under the Ukraine Solidarity Trust Fund”.

EU chief Charles Michel first mooted the fund in a call with Ukraine’s President Volodymyr Zelensky last Friday.

Michel said it would “help provide basic services and meet citizens’ immediate needs” and would “give liquidity for continued support to authorities and in the longer term serve as backbone for reconstruction”.

US President Joe Biden will also attend the EU summit on Thursday during a visit to Europe intended to underscore transatlantic unity in the face of Russia’s aggression and bolster support for Ukraine.

The EU has already agreed 1.2 billion euros (S$1.8 billion) in emergency funding to help the Ukrainian authorities.

[ Ссылка ] #eudebates

свернуть