Commission president Ursula von der Leyen’s plans still need to be finalised and ultimately signed off by member states and there are deep divisions as to how to address the crisis. Already the most controversial idea — to cap the price of imported Russian gas — has been shelved for more talks. But gas prices are already falling, at least in part because of European action.
In the leaked paper, the commission estimates that there will be a fivefold increase in oil, gas and coal companies’ profits in 2022. These “surplus” and “unexpected” profits, do not result from any economic or investment choices, states the commission, but “unpredictable developments in the energy markets following the ongoing illegal war in Ukraine”, it says.
The challenge will be to find an EU-wide solution that would fit each of the member states with their varying sources of energy, wealth and industrial strength. Ms von der Leyen will set out her plans on Wednesday, and the Czech rotating presidency has called another emergency meeting for September 30th.
EU member states that import large amounts of gas from Russia, including Hungary, Slovakia and Austria, have spoken out against a cap on Russian gas because they fear the Kremlin would halt all gas flows, plunging their countries into recession. The Russian president, Vladimir Putin, has already threatened to halt energy exports to Europe if such a plan is agreed.