FT: EU to double gas reserves to reduce reliance on Russian supplies

The European Union intends to more than double the capacity of its natural gas storage facilities by next winter in order to reduce dependence on supplies from Russia. It is reported by the Financial Times.

According to the publication, the European Commission has already prepared a relevant document. Currently, the storage facilities are 29% full, and by the end of September, the EU plans to increase the volume of gas in them to 80%.

In addition, the document contains proposals to abolish fees for gas storage, allow countries to pay companies for it, introduce minimum prices for gas in case the cost of gas decreases while it is in storage, and introduce an excess profit tax until June 30. The document can be adopted by the EC as early as next Tuesday.

Earlier it became known that Germany began to purchase gas bypassing Russia. German Chancellor Olaf Scholz explained that the authorities were preparing in advance for the consequences of anti-Russian sanctions imposed due to the Russian military operation in Ukraine, and understood that “difficulties could arise” with supplies from Russia.

Recall, on February 24, Russian President Vladimir Putin made an emergency appeal to the Russians and announced a special military operation in the Donbass. In his speech, he stated that “circumstances require decisive action from Russia” and stressed that “Russia will not allow Ukraine to have nuclear weapons.” In response to Russia’s actions, Western countries (USA, Canada, European Union, Great Britain, Japan) announced new, tougher sanctions against the Russian Federation, including financial and economic ones.