Russian Energy Minister Says Price Cap on Gas May Destabilize Global Energy Market

MOSCOW (Sputnik) - Introduction of a price cap on Russian gas could further destabilize international energy market and affect both producers and consumers of gas, Russian Energy Minister Nikolay Shulginov said on Tuesday.

"The idea to impose a price cap on gas, which is supported by a number of EU countries, threatens to further destabilize energy markets leading to negative consequences for both consumers and producers of gas," the minister said during his speech at a ministerial meeting of the Gas Exporting Countries Forum (GECF).

Shulginov added that sanctions imposed against Russia in response to its military operation in Ukraine and plans of European countries to completely stop importing Russian fossil fuels had led to an unprecedented rise of gas prices and major disruptions in supply chains.

"It is obvious that the current energy crisis is man-made. One of the main reasons are illegal unilateral restrictions," Shulginov noted, adding that GECF countries should work on mitigating negative effect of these sanctions for the international energy market.

After the beginning of Russia's military operation in Ukraine in February 2022 and the adoption of several packages of sanctions against Moscow by the West, energy prices have skyrocketed in Europe, placing energy security high both on the global and national agenda. At the same time, the EU has been looking for alternatives to Russian natural gas as it has pledged to end its dependence on energy supplies from Russia. EU countries are also discussing the introduction of a price cap on gas supplies from Russia similar to the one suggested by G7 for Russian seaborne oil.