Page 5 - AsiaElec Week 42 2022

AsiaElec COMMENTARY AsiaElec

Many other EU leaders are on board with the President Ursula von der Leyen proposed an
new confrontational stance, as China and Russia EU-wide gas price cap as a way to contain soar-
are increasingly seen as working together to defy ing inflation, but the idea met with resistance
the West in its opposition to the war in Ukraine. from several member states.
“I think with China it’s the same as with Rus- During the discussions on October 20 a final
sia. It is in their interest that we are divided. It’s in agreement was not reached, but a roadmap was
our interest that we are united,” Estonian Prime adopted and EU ministers agreed to continue to
Minister Kaja Kallas told Reuters. work on a compromise solution.
The only real breakthrough was that Ger- Amongst the ideas on the table was that of
many dropped its opposition to the idea of a gas collectively buying gas to increase the purchas-
price cap. Germany is amongst the most exposed ers’ market power. “We should consider a price
to Russian gas imports in Europe and has been limitation in relation to the TTF in a way that
resisting any measures that might hurt its own continues to secure the supply of gas to Europe
economic interest. and to all member states,” von der Leyen said.
However, with the Nord Stream pipelines During the talks EU leaders eventually
destroyed and with no prospect of repairing backed proposals made by the EC this week to
them in the foreseeable future German has launch an alternative price benchmark for liq-
softened its opposition to the plans to limit the uefied natural gas (LNG) and voluntary joint gas
crippling gas prices, although there remains little buying, although laws to make this happen will
unity in the EU on the best course of action. need to be negotiated over the coming weeks.™
Like the oil price cap scheme that is also in
the works for December, European Commission

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