Germany has dropped its opposition to a price cap on Russian gas, which means member states are now going ahead with a contraversial scheme to cap Russian energy prices.
The news was announced by the Czech European Union presidency on Monday after an agreement reached by climate and energy ministers of the member states.
“We have a maximum price for gas, it will be €180 per megawatt hour,” commented Polish Prime Minister Mateusz Morawiecki on Facebook.
Morawiecki revealed that during discussions in Brussels, a majority coalition had been constructed to overcome resistance coming “mainly from Germany.” This, according to the Polish prime minister, means the “end of the ability of Russia and Gazprom to manipulate the market.”
Polish Minister for Climate and Environment Anna Moskwa took to Twitter to note that Poland had for several months been appealing for an effective mechanism to stabilize the price of gas on the European market.
According to the Polish Press Agency (PAP), the agreed upon price mechanism will be activated once the reference price of gas reaches €180 per MWh. This limit will be set on Feb. 15 of next year.
Some experts are warning that the price cap could lead to gas shortages in the coming months and years. Germany, in particular, worries that the price cap could lead to gas shortages for its industiral sector. Hungary has also come out against the gas price cap.
“I would like to make it clear that Hungary does not support the introduction of a price cap on natural gas under any circumstances. It is a harmful, dangerous and completely unnecessary measure,” said Hungarian Foreign Minister Peter Szijjarto.