The European Union refused to impose a price limit on Russian gas

The European Union has abandoned the idea of limiting prices for Russian gas, while a tax on excess profits of oil and gas companies will be introduced in the region.

The new tax will be levied on companies operating on fossil fuels. In addition, the incomes of electricity producers with low carbon emissions will be limited.

European media note that the introduction of a price ceiling is not planned either for Russian gas or for other imported gas. But oil and gas companies will now pay a tax on excess profits, which is called the «solidarity contribution». The exact size of the new tax rate is still unknown. 

The European Commission notes that in 2022, the profits of oil, gas and coal companies have already increased fivefold. The reason for this in the EC is the unpredictable events in the energy markets against the background of military operations in Ukraine. 

Analysts believe that the EU has changed its mind about setting a ceiling on the price of Russian gas due to insufficient support for this initiative. It was opposed by EU members importing large volumes of gas from Russia – Hungary, Slovakia and Austria.