European Leaders to Discuss Price Cap on Russian Gas During Next EU Summit, Draghi Says

ROME (Sputnik) - European leaders will discuss the introduction of a price cap for imports of Russian gas during the next European Union summit in October, Italian Prime Minister Mario Draghi said on Wednesday.

Italy has been advocating for setting a price cap for Russian gas in Europe since spring. At the time, it was proposed to limit the price of Russian gas to 90 euros ($89.35) per megawatt hour.

"The European Commission is working on the proposal to set a price cap for gas, it will be presented at the next European Council. I do not know what the outcome would be because the positions are very different. However, the Commission will present an analysis on how to unpeg the cost of electricity from gas. This link between the energy that is produced from renewable sources — water, solar, wind — and the maximum price of gas no longer makes sense," Draghi told a forum for government and political leaders in the Italian city of Rimini.

The prime minister said that the Italian government has done significant work at the European level to cap the prices of Russian gas. He added that some EU countries continue to oppose the proposal as they are afraid that Moscow would cut off gas supplies. However, Draghi said, "the repeated suspension of supplies this summer showed the limits of this position," adding that Europe and these countries "are facing the uncertainty of Russian gas supplies and dizzying prices."

Gas prices in Europe have skyrocketed throughout the year, reaching $3,000 per 1,000 cubic meters in August amid waning Russian energy supplies. Russian energy giant Gazprom announced its plans to reduce supplies via a key gas pipeline starting July 27 to no more than 33 million cubic meters per day, 20% of the pipeline's nominal capacity. The company was forced to reduce shipments via the Nord Stream 1 network over delays in the repair of a Siemens-built gas pumping turbine in Canada.

On Monday, gas futures prices in Europe rose 19% and reached $3,022.4 per 1,000 cubic meters, surpassing the $3,000 threshold for the first time since March, according to data from the London-based ICE exchange.