Russia sets its own gas-price cap for EU
Gazprom has been banned from buying gas from its projects with Western partners at above a price to be set by Kremlin | Russian President Vladimir Putin signed a decree on Thursday that partially relieves state energy major Gazprom from fulfilling its obligations to its foreign partners who hail from countries that have imposed sanctions on Moscow. According to the decree, published on the official government portal, Gazprom and its subsidiaries are prohibited from paying for gas, or for its production and transport, from joint projects with its EU partners in Russia if the amount of payment is higher than the cost established by the Russian government. ● The decree targets Gazprom's joint ventures with Germany’s Wintershall and Austria's OMV. In partnership with the two companies, Gazprom is developing two large natural gas deposits in Russia, the Yuzhno-Russkoye and the Urengoyskoye fields. ● The regulation has been introduced retroactively, and so is enforeceable from March 1, 2022, and will be effective until October 1, 2023. The government has been charged with setting a price limit within ten days.