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EU clinches deal on 15% cut in gas

consumption from next month

TERMINALS EU member states have agreed to back the Euro- This is a response to criticism from Cyprus, an
pean Commission’s proposal to implement a island with no gas link to the mainland, and
15% cut in gas consumption starting next month, Spain and Portugal, which have argued that
but the agreement includes some concessions to they are essentially an “energy island” because of
those countries that had voiced opposition to the their limited capacity to send gas to France and
measure. onwards.
The deal was hashed out following a meeting What is more, member states can also secure
of EU energy ministers in Brussels on July 26, a waiver from mandatory action if they have
and is aimed at ensuring that the bloc has enough overshot their gas storage targets. Poland, for
gas to last through the winter in the event that example, has filled its storage facilities to close
Russia cuts off supply completely. A day ear- to 99% of capacity – far above the EU average of
lier Gazprom announced it would be making a 66.7% – and has expressed reluctance to share
further reduction in gas deliveries via the Nord these reserves with other member states less pre-
Stream 1 pipeline to just 20% of its capacity, pared for winter. Member states can also avoid
ostensibly because of the need to shut down a mandatory cuts if they are heavily dependent
Siemens turbine because of its technical condi- on gas as a feedstock for critical industries, or if
tions. But European leaders have dismissed the their gas consumption has risen by at least 8%
move as politically motivated, as Gazprom could, in the past year versus the average for the past
if it wanted to, divert volumes to other transport five years.
routes such as Ukraine. “Today’s decision has clearly shown the
The European Council, comprising the lead- member states will stand tall against any Rus-
ers of all member states, the council’s president sian attempt to divide the EU by using energy
and the president of the European Commission, supplies as a weapon,” Czech Industry Minister
announced on July 26 that a political agreement Jozef Sikela commented in a statement. “Adopt-
had been reached to implement the voluntary ing the gas reduction proposal in record time has
reduction in gas use. This reduction will become undoubtedly strengthened our common energy
mandatory in the event that a state of emergency, security. Saving gas now will improve prepared-
referred to as a “Union alert”, is triggered if the ness. The winter will be much cheaper and easier
risk of gas shortages becomes acute. for the EU’s citizens and industry.”
Under the deal, member states will imple- German Economy Minister Robert Habeck
ment the cut between August 1, 2022 and March likewise said the agreement would show Russian
31, 2023, using average consumption over the President Vladimir Putin that Europe remained
last five years as a baseline. They will be able united, despite recent curtailments in gas supply.
to use measures of their choice, and while EU “You will not split us,” he said.
countries have committed to do their best to According to Reuters, the only country to
meet the target, the agreement also covers cer- oppose the deal was Hungary, which declared its
tain exemptions. own state of energy emergency last week, intro-
Notably, those member states that have no ducing the rationing of power and gas supplies,
or only limited interconnection with others’ gas including to households.™
grids can be exempt from any mandatory cuts.

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