European Union plans to counter increasing prices of Russian gas

Europe’s energy ministers have joined forces to establish a plan that will reduce their dependence on foreign gas and purchase supplies as a part of a larger effort to combat Russia’s stake in highly coveted resources. As Moscow continues to surge prices of gas, the 27 member bloc is set to purchase strategic gas reserves. It is worth mentioning that 41 per cent of the bloc's gas comes from Russia, which was recently asked to pump more of it to the bloc. 

“We’ve seen huge price increases,” said Dimitri Vergne, head of the energy team at the European Consumer Organization, as quoted by Sputnik. “It’s worrying ahead of the winter, when gas consumption will necessarily increase.”

According to the news website, gas prices across the European continent have surged by 250 over the past year, threatening the continent ahead of harsh winter months. Many countries, including Spain, Germany and France have taken individual steps to combat the energy crisis. While Spain has capped the energy prices, France, meanwhile, has promised a one-time payment of up to €100 to people battered with the gigantic energy bills. 

While the energy crisis in Europe continues to exacerbate, Russia gave a respite by announcing the completion of the Nord Stream 2 gas pipeline construction on September 10. The Nord Stream 2 is built under the Baltic Sea and bypasses Poland and Ukraine. It is a 1,230-km gas pipeline and would bring 55 million cubic meters of gas annually from Russia to Germany.

'Pay in Euros,' say Putin 

In a separate announcement, Russian President Vladimir Putin said that the European nations should pay for Russian gas in euros. The move came after Russia said that it will completely remove the US dollar from its National Wealth Fund, which accumulates oil revenues to increase the country's resilience to market fluctuations and help support major national projects. Putin said, “The euro is completely acceptable for us in terms of gas payments. This can be done, of course, and probably should be done.”

(Image: AP)