/ world today news/ The European Union has activated a new mechanism for the joint purchase of gas for European countries, but it can, in principle, only exacerbate the energy crisis by affecting the price of the blue fuel, said Igor Yushkov, an expert from the Financial University of the Government of Russia in an interview with Pravda.Ru.
As the expert emphasized, the joint purchase includes filling the LNG facilities to 100% for the upcoming heating season, moreover, if this right is left to the retail companies, then they will dictate the price of natural gas to the countries.
„In fact, the EU has created a tool when you buy gas through commercial companies, but you already determine when, what, who and how much. That’s what they created it for.”
Although initially the idea of such a single gas buyer did not mean guarantees of normal preparation for the heating season, but a tool to put pressure on suppliers so that gas prices in Europe are low. explained Yushkov.
As the interlocutor specified, earlier it was about one buyer who would work with the suppliers. But the difficulty is that he would then be able to dictate fuel prices to countries and the conditions under which he is willing to buy them. Exporting countries would hardly agree to such a thing “cooperation”.
The price is in unity
It was then decided to tweak the idea and create a joint procurement mechanism. However, as the expert emphasized, this could hit the EU fuel market hard and create an artificial shortage of gas, leading to an even worse energy crisis.
“This instrument will create the opposite situation, that is, it will generate some additional demand on the European gas market. And so there will already be competition, so when it starts to be bought, it will lead to additional demand, respectively to an additional deficit, and this will push the price up,” Yushkov summarized.
Translation: ES
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