Hague to Ask for Exemption in Sanctions as There is No Substitute for Russian Gas Now, Reports Say

Over the past days, gas prices and energy costs set new records across Europe, as sanctions against Moscow continue to affect the market, forcing politicians to discuss price caps.

The city of The Hague will be requesting a temporary exemption from the anti-Russian sanctions, Reuters reported on Friday, citing a letter from Deputy Mayor Saskia Bruines to the city council.

The restrictions stipulate that governments and other public bodies should end existing contracts with Russian companies by October 10.

However, The Hague was not able to find a new supplier of gas to replace the Russian company Gazprom. The city held an EU-wide tender in June and July, but failed to attract any bids from potential suppliers, the letter suggests.

"We will ask for an exemption for our current arrangement until Jan. 1 2023 to guarantee the safety of supply and to facilitate negotiations," Bruines said.

However, she stressed that any new contract which is to enter into effect on Jan. 1 would be significantly more expensive than the current deal with Gazprom.

Gas prices in Europe have been on the rise this year, after the US, Britain and the EU imposed sanctions on Russia, citing the special military op in Ukraine. This week, gas futures reached $3,300 per 1,000 cubic meters amid waning energy supplies in Europe.

Russian energy giant Gazprom announced its plans to reduce supplies via the Nord Stream 1 pipeline over delays in the repair of a Siemens-built gas-pumping turbine in Canada - which was caused by Ottawa's sanctions against Moscow.