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EU Plans for Russian Gas Cut-Off

ENERGY

The EU Commission announced this week it is working on a gas demand reduction plan that could be implemented in the event of a full disruption in Russian gas.

  • "The EC will facilitate setting up a coordinated EU demand reduction plan with pre-emptive voluntary curtailment measures to be ready in case an emergency arises," it said.
  • "In a spirit of solidarity, less affected member states could reduce their gas demand for the benefit of more affected member states," it added.
  • Plans for the potential for a gas cut off by Russia have been given more precedence of late after Poland and Bulgaria lost supplies, while Finland look like they could be next.
  • Russia may decide to enforce its plans to cut off supplies to buyers not willing to pay in rubles, with deadline looming for many. Eni is set to pay for Russian gas tomorrow but are believed to have opened a ruble account.
  • The EU is also exploring gas price caps in case of emergency situations.
  • Around Eur 10 billion is being earmarked to upgrade EU gas infrastructure to a suitable level to deal with a loss in Russian flows.

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