European Commission to Propose Floating Price Cap on Russian Oil
The European Commission is expected to propose a floating Russian oil price cap this week as part of a new draft sanctions package in an attempt to overcome opposition from some member states, four EU diplomats said.The Commission proposed lowering the Group of Seven (G7) nations' price cap from $60 a barrel to $45 barrel in June in its 18th package of sanctions against Russia for its invasion of Ukraine. The G7 price cap, aimed at curbing Russia's ability to finance the war in Ukraine, was originally agreed in December 2022.The plan to lower the price cap was prompted by a fall in global oil prices…
Orlen LNG to sell 140 million cubic meters of US LNG to Ukraine's Naftogaz
Naftogaz, Ukraine's energy company of state, has signed a deal to purchase 140 million cubic meters (mcms) of U.S. Liquefied Natural Gas from Poland's Orlen. After Russian shelling, Ukraine's storage sites are almost empty and it needs to import large quantities of gas in order to meet its heating requirements for 2025/26. "Naftogaz diversifies its sources and routes for gas supply." "This increases Ukraine's energy resilience and security amid the ongoing full scale war with Russia," Naftogaz Chief Executive Officer Sergii Koretskyi stated in a press release. Naftogaz announced that it has already purchased 440 mcm LNG from Orlen.
Prices of gas in Europe are rising as Norwegian supplies increase.
The Dutch and British gas wholesale prices were trading in a narrow band early on Tuesday, as the higher temperatures in Europe restricted heating use. Meanwhile, the cooling demand and low winds generation mainly affected the power market. LSEG data shows that the benchmark Dutch front-month contract was up 0.37 euros at 33.40 Euro per megawatt-hour or $11.55/mmBtu at 0848 GMT. The Dutch day-ahead contract increased by 0.25 euros to 32.38 Euro/MWh. The British day-ahead contract fell 0.25 pence to 78.00p/therm. The heatwave that has been sweeping Europe will likely end on Thursday.
Prices continue to decline due to a healthy supply and ceasefire
The Dutch and British wholesale prices of gas continued to drop on Thursday morning due to an ample supply and weak demand, as well as the apparent holding of a ceasefire agreement between Israel and Iran. The benchmark Dutch front month contract at TTF hub was down 0.73 euros to 34.65 Euros per Megawatt Hour (MWh) at 0857 GMT. Meanwhile, the August contract is 0.77 euros lower at 35.13 Euros/MWh. The British front-month contracts was down 1,83 pence to 80,80 pence per therm. According to Oleh Skrynyk, LSEG's gas analyst, Norwegian exports are up in continental Europe.
EU envoys are expecting to resolve the blockage of new Russia sanctions by this week
Diplomats from the European Union said that they expected to reach an agreement during a summit of the EU this week regarding an 18th package against Russia. Slovakia and Hungary use it as a bargaining tool for concessions about Russian energy. The European Commission proposed the package to encourage Russia to negotiate with Ukraine a ceasefire after EU leaders demanded "massive sanction" in May. The package targets Russia's energy revenue by naming banks and hitting the shadow tanker fleet. Hungary and Slovakia announced on Monday that they would not be supporting the new sanctions unless the proposal to prohibit imports of Russian oil by 2027 was changed.
Hungary's Orban calls on EU to lift Russian energy ban amid US/Iran conflict
Hungarian Prime Minster Viktor Orban urged on Sunday the European Union not to impose a ban on Russian Energy due to the expected increase in energy prices after the US bombings of Iran. The European Commission proposed on Tuesday a legally-binding ban on EU imports from Russia of gas and liquefied gas by 2027. Legal measures were used to ensure that EU members Hungary, and Slovakia could not block the plan. The proposals outline how the EU plans to put into law its pledge to end decades-old relations with Europe's former number one gas supplier following Moscow's invasion of Ukraine in 2022.
The EU's plans to ban Russian gas
The European Commission proposed Tuesday legally binding measures to end the European Union's imports from Russia of gas and liquefied gas by the end 2027. This would put an end to decades-old energy relationships with Europe's ex-top gas supplier. The details of the proposals are below. They still require approval by EU countries and the European Parliament. The ban will be implemented in phases. The EU will first ban imports of Russian gas and LNG under any new deals signed by the end this year. From June 17, 2026 the EU will ban imports of short-term contracts for contracts signed prior to June 17, 2025.
Austria: EU should resume Russian gas imports in the event of peace in Ukraine
An Austrian official told Brussels that the European Union would be willing to resume Russian gas imports in the event of a peace agreement between Russia and Ukraine. The European Commission will propose legal measures to implement the ban on Tuesday, with the goal of ending the EU's dependence on Russian energy before the end of 2027. Elisabeth Zehetner told reporters that Austria's junior energy minister would be weighing all the proposals before deciding on a position. Zehetner stated on Monday that it was clear that the situation would be different when the war ended.
Austria: EU should consider returning to Russian gas in the event of peace in Ukraine
An Austrian official told Brussels that the European Union would be willing to resume Russian gas imports if there was a future peace agreement between Russia and Ukraine. The European Commission will propose legal measures to implement the ban on Tuesday, with the goal of ending the EU's dependence on Russian energy before the end of 2027. Elisabeth Zehetner (Austria's State Secretary for Energy) told reporters Monday that the country would be weighing all of the proposals before deciding on its position. EU diplomats said Zehetner…
EU continues with Russian gas banning proposal despite Hungary and Slovakia's vetoes
Hungary and Slovakia opposed on Monday a planned European Union prohibition on Russian gas imports. However, Brussels is expected Tuesday to propose the legislation, which may pass without their approval. By the end of 2027, the European Commission plans to ban EU imports of Russian gas and LNG. It will announce the legal implementation of the plan announced last month on Tuesday. Hungary and Slovakia blocked the EU energy ministers' ability to issue a joint statement approving the plan. The plan was supported by 25 other EU member states.
EU countries are considering a softening of the methane emission law for gas imports
According to a document obtained by, European Union countries could demand that Brussels simplifies the EU's law on methane emissions, which has raised concerns among companies that it may hinder imports of U.S. liquid natural gas. The EU will require importers of gas and oil to report and monitor the methane associated with their imports starting this year. The second biggest cause of climate changes is methane emissions from gas leaks. The draft conclusions of a Monday meeting between EU energy ministers revealed that governments were preparing to request the European Commission add the methane legislation to its "simplification"…
Fico: Slovakia can't support new EU sanctions on Russia without energy solutions
Robert Fico, Slovakia's Prime Minister, said that the country will not support the EU's 18th sanctions package against Russia until the European Commission offers a solution for the problems the country would face if the bloc were to phase out Russian energy according to plan. The Commission proposed a new set of sanctions on Tuesday against Russia, for its invasion of Ukraine over three years ago. These targeted Moscow's banks, energy revenues and military industry. Fico called the EU executive's plans, announced last month by the EU executive, to phase out Russian energy and gas imports over the next few years "economic suicide".
Metal industry group claims that new EU State Aid rules do not help
A metals industry group wrote a letter to the European Commission on Friday, saying that plans to overhaul state aid rules ignore heavy industry, which is critical for processing energy transition metals. They fail to mitigate energy costs, while green rules may penalise them. After a public hearing on its proposal from February, the Commission will announce new rules for state aid on 26 June. The group sent a letter to the Commission president Ursula von der Leyen, and the commissioners responsible for climate, energy, industry and competition this week.
Maguire: Eastern Europe's secretive surge in solar power generation
In Europe, the discussion of solar energy generation is dominated by Germany and Spain. Solar capacity in the nine largest producers of solar energy in Eastern Europe grew at a pace that was more than twice as fast as the rest of Europe over the last five years. This has allowed Eastern Europe to double its regional solar production share since 2019. Solar farms will provide electricity to at least six Eastern European countries, when solar radiation levels reach their peak this summer. The rapid growth of solar power in many countries is replacing or curtailing the output from coal-fired power plants and natural gas-fired power stations.
Maguire: Eastern Europe's secretive surge in solar power generation
In Europe, the discussion of solar energy generation is dominated by Germany and Spain. Solar capacity in the nine largest producers of solar energy in Eastern Europe has increased at a pace that is more than twice as fast as the rest of Europe over the last five years. This has allowed Eastern Europe to double its regional solar production share since 2019. Solar farms will provide electricity to at least six Eastern European countries, with a combined total of over 20% of the monthly power they use this summer. This is when solar radiation levels in the region reach their highest level.
Ukraine Approves Gas Import Via Transbalkan Pipeline To Avoid High Transit Fees
Ukraine's energy regulator has approved a gas import mechanism that will avoid high transit fees when supplying gas through the Transbalkan pipeline from Greece to Ukraine, the Ukrainian energy ministry said on Tuesday.Ukraine has faced a serious gas shortage since a series of devastating Russian missile strikes this year, which significantly reduced domestic gas production.Ukraine now imports gas via Slovakia and Hungary, but does not use the southern route because of its higher transit tariffs, as gas from LNG terminals in Greece also passes through Bulgaria…
Orban, Orban: EU's plan to ban Russian imports of energy must be stopped
Viktor Orban, the Hungarian prime minister, told state radio that the European Union's plan of banning Russian energy imports should be stopped "by any means". EU executive announced earlier this month that the European Commission would propose next month legal measures to phase-out the EU's imports for all Russian gas, including liquefied gas, by the end 2027. The proposed ban has been opposed by Slovakia and Hungary who rely on Russian gas and oil supplies. We must stop the Ukrainians from trying to ban Russian gas in Europe. We must stop it at all costs. Orban stated that a pipeline is useless if it cannot be used to transport gas.
How can the EU ban Russian Gas?
Next month, the European Commission will propose legal measures that will phase out EU gas imports from Russia by 2027 and prohibit spot contracts with Russia before the end this year. This is how it could work. How will the EU ban Russian gas? Legally, sanctions are the easiest way for the EU's to prohibit Russian gas and liquefied imports. They require the unanimous approval of all 27 EU member states. Hungary and Slovakia have pledged to block any gas sanctions, as they want to keep close political ties to Russia. Both countries import gas via the Turkstream pipe and claim that switching to alternative sources would raise energy prices.
Documents show that Eni, an Italian company, delivered Russian gas to Turkey in the last year.
Eni supplied gas to Turkey last year, according to documents published on the Italian energy company's website on Monday. This confirms that the company is still dealing with Russian gas, despite the suspension of supplies within Europe. Documents show that in a response to a written question from an Eni shareholder, ahead of the AGM scheduled for Wednesday, the company stated that Algeria would be the largest gas supplier to the group by 2024. Norway and Russia were the next two biggest suppliers. According to Eni's written response, Russian gas accounted 12% of its total gas supplies.
TurkStream gas pipeline may slow down EU-Russia decoupling
May 7 - While the European Commission has announced a revised plan to wean Europe off Russian energy completely by 2027, some parts of Europe have taken the opposite approach. The TurkStream pipeline is not only still operating, but has expanded its gas supply. Since the beginning of the conflict in Ukraine, Russian gas exports have dropped dramatically. They went from more than 155 billion cubic meters (bcm), in 2021, to less than 40 bcm by 2024. In the same time period, Russian LNG exports to the EU almost doubled, reaching around 25 bcm. France, Belgium Spain and the Netherlands bought over 90% of these volumes.
