EU fails to agree Russia gas price cap, but will introduce windfall tax on energy companies

The EU will not impose a price cap on imports of Russian natural gas
The EU will not impose a price cap on imports of Russian natural gas
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The commission’s proposal reportedly has no mention of a price cap, as EU member states couldn’t agree on the matter in a recent discussion.

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At the same time, the document calls for a windfall tax on exorbitant profits of European energy companies, caused by surging gas prices. The measure won’t apply to green energy production.

Head of the European Commission Ursula von der Leyen is expected to present the plan on Sept. 14.

The Guardian notes that the final text of the proposal is still subject to change, nor does it specify the rate of the windfall tax.

Read also: Gazprom concocts new excuses to continue shutdown of Nord Stream-1

The commission suggests the anomalous profits came purely out of fuel price spikes, and were not due to any economic investment by Europe’s energy businesses.

Finally, the plan also calls on EU members to agree on a mandatory electricity consumption reduction target.

G-7 countries earlier agreed to introduce price caps on Russian oil, coming into effect in December.

Read the original article on The New Voice of Ukraine