The EU is extending its price restriction measures, with Russian natural gas imports being the new target for such a policy. Discussions on the implementation of the gas price cap are underway, and analysts say it will be enacted in the near future.
The price cap was initially proposed by Ursula von der Leyen, the President of the European Commission. She gave the timeline for its implementation and said that EU countries were days away from finalizing it. The price cap is a part of a regulation mechanism aimed at stabilizing energy prices.
The European Commission first proposed a dynamic natural gas price ceiling on November 22. The initial proposal said that the cap would be enforced if the price of front-month TTF futures exceeded €275 for two weeks. Furthermore, the spread between TTF prices and the LNG reference price should be at least €58 for 10 consecutive trading days. The energy ministers of EU member states failed to agree on the level of the price ceiling for Russian gas imports during their meeting on December 13.
