EU energy ministers approved a draft European law aimed at reducing demand for natural gas by 15 percent from August to March. The new legislation entails voluntary national measures to reduce gas consumption and, if they yield insufficient savings, a trigger for mandatory action in the 27-member bloc. “I know the decision was not easy, but I think, in the end, everyone understands that this sacrifice is necessary. We have to, and we will share the pain,” Czech Industry Minister Jozef Sikelá told reporters after chairing the meeting. in Brussels. European Commission President Ursula von der Leyen welcomed the move, saying in a statement that “the EU has taken a decisive step to address the threat of a complete gas cut-off from [Russian President Vladimir] Putin”.
Interruption of supply
Energy ministers approved the legislation a day after Russian energy company Gazprom said it would cut gas flows through the Nord Stream 1 pipeline to Germany to 20% of capacity from Wednesday. Natural gas prices jumped on Tuesday to their highest level since early March, according to the European benchmark TTF — and more than five times what they were a year ago. Since Russia invaded Ukraine in late February and the West retaliated by imposing economic sanctions, 12 EU countries have experienced interruptions or reductions in Russian gas deliveries. Gazprom said the Nord Stream 1 cuts were necessary because of delays in receiving a repaired turbine for the pipeline. The turbine, which was repaired in Canada, has not been reinstalled and another is expected to be out of service because it needs repair now, Kremlin spokesman Dmitry Peskov told reporters on Tuesday. “The situation has been critically complicated by the restrictions and sanctions imposed on our country,” Peskov added. “If these restrictions did not exist, all maintenance, warranty and service work would have been carried out in a normal, routine and prompt manner, without causing situations like the one we are seeing now.”
Trigger for mandatory actions
Under the ministerial agreement signed in less than a week, the 27 EU member states are free to decide how best to achieve the target of a 15 percent reduction in average annual gas use over the past five years. France, for example, wants to save energy by lowering office thermostat temperatures in winter and ensuring air conditioners in public buildings and shops are used more efficiently, among other measures. European Commission President Ursula von der Leyen speaks at EU headquarters in Brussels about gas cuts in this photo from Wednesday. The EU agreed on Tuesday to reduce its use of natural gas this winter amid Russian threats to cut supply. (John Thys/AFP/Getty Images) Exceptions are allowed for countries that may have particular vulnerabilities or be particularly hard-pressed by certain cuts. The European Commission, the EU’s executive arm, can ask members to consider triggering a mandatory system of cuts if it still fears a supply shortfall over the next eight months. Any five member countries could also trigger a vote if they declare a national gas supply alert. The legislation was based on a July 20 proposal by the Commission, which wants to maintain a common EU front for a war that shows no sign of ending. He said the coordinated bond would allow the bloc as a whole to get through the winter if Russia halted all natural gas deliveries.
No penalties for natural gas
Although the EU has agreed to embargo oil and coal from Russia from later this year, the bloc has avoided imposing sanctions on Russian gas because Germany, Italy and some other member states rely heavily on it imports. “Germany made a strategic mistake in the past with its heavy reliance on Russian gas and the belief that it would always flow continuously and cheaply,” said German Economy Minister Robert Habeck, who is also in charge of energy and serves as vice chancellor. of the country. “But it’s not just a German problem.” Disruptions in Russian energy trade with the EU are fueling inflation already at record levels in Europe and threatening to trigger a recession in the bloc just as it is recovering from a pandemic-induced recession.
Political tests
The energy squeeze is also reviving decades-old political tests for Europe about policy coordination. While the EU has gained central authority over monetary, trade, antitrust and agricultural policies, national sovereignty in energy matters still largely prevails. Ukraine’s Energy Minister German Galushenko speaks to the media as he arrives for an emergency meeting of EU energy ministers in Brussels on Tuesday. (Virginia Mayo/The Associated Press) Reflecting this, energy ministers scrapped a provision in the draft gas cap law that would have given the European Commission the power to decide on any switch from voluntary to mandatory actions. Instead, ministers ensured that any decision on mandatory measures would remain in the hands of national governments. Ministers also scaled back other elements of the original proposal, including exemptions for island countries. However, Tuesday’s agreement marks another milestone in EU policy integration and crisis management. Previous EU legislative initiatives in the energy sector often involved months or years of negotiations between national governments. “We have a plan to act together in a coordinated way,” EU Energy Commissioner Cadre Simpson said after the deal was sealed. “This was a test of the union’s unity and resolve.”
