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Christian Lindner promotes European price caps on Russian oil

2022-09-09T10:18:53.436Z


Price caps for Russian oil and gas are intended to reduce Moscow's profits and depress energy costs. While Germany is open to these measures, other EU countries are slowing down.


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Finance Minister Christian Lindner in Prague: "We want to avoid revenue for Russia"

Photo: MICHAL CIZEK / AFP

It is supposed to be a measure to support the ailing economy: Federal Finance Minister Christian Lindner (FDP) has called on the EU countries to support a price cap on Russian oil.

"We want to avoid revenue for Russia and maintain the price level for our economies," said Lindner on the sidelines of an informal meeting with his EU colleagues in Prague.

He referred to the example of the seven important industrialized countries (G7).

The oil price cap is intended to restrict Russia's ability to finance the war against Ukraine.

In addition, the global increase in energy prices is to be curbed.

At the beginning of September, the G7 countries, under the German presidency, had spoken out in favor of a global upper price limit for Russian oil supplies.

All EU member states are invited to support the idea, Lindner tweeted.

An oil price cap “is more effective the more states implement it”.

The Kremlin had warned of a "destabilization" of the market in the event of such a price ceiling.

Implementation is considered difficult because it actually requires support from major buyers of Russian oil such as China and India.

EU Commission proposes price cap for gas

Meanwhile, at a meeting of energy ministers, the EU Commission proposed introducing a price cap on gas from Russia in order to limit the country's financial resources for the war against Ukraine.

This would mean that gas that exceeds a certain price limit could no longer be bought in Russia.

Hungary had spoken out against such a price cap on Russian gas.

This is against European and Hungarian interests, the Eastern European country's foreign minister, Peter Szijjarto, said in a Facebook video ahead of the special meeting, as reported by Reuters.

Hungary is particularly dependent on Russian oil and gas supplies.

Russia has recently stopped the flow of gas to most European countries - with reference to the western sanctions after the Russian attack on Ukraine.

The Russian company Gazprom had started to expand its deliveries to Hungary in August.

Hungary was one of the few EU countries to have sharply criticized the sanctions against Russia in the past.

Reason: You are not suitable to really weaken the government in Moscow, but threatened to destroy the European economy.

Federal Economics Minister Robert Habeck is linking support for the EU Commission's initiative to limit Russian income from gas transactions to the approval of states such as Hungary.

If countries that are currently still getting gas from Russia are willing to take the risk of a complete supply stop by Russia, he would be happy to do that, said the Green politician in Brussels.

If countries do not want this, that should be respected.

"How presumptuous would it be to say: Germany always asks for leniency, but the other countries don't get any?" he said.

According to Habeck, Germany can now manage without Russian gas.

This is "gigantic".

ani/AFP/Reuters/dpa

Source: spiegel

All business articles on 2022-09-09

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