EU Weighs Ukraine Crisis Strategy to Calm High Energy Prices

The European Union will consider reopening a set of energy measures used after Russia’s 2022 invasion of Ukraine as the bloc seeks to contain a fresh price shock tied to the war in Iran.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — The European Union will consider reopening a set of energy measures used after Russia’s 2022 invasion of Ukraine as the bloc seeks to contain a fresh price shock tied to the war in Iran. Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Dan Jorgensen, the EU’s energy commissioner, said there were no immediate risks to oil and gas supplies. But markets for refined products such as diesel and jet fuel are tightening and pushing prices higher. The commission will soon announce legislative measures to curb energy costs, he said.When asked whether the commission would consider steps similar to those deployed after Russia’s invasion — including emergency laws to curb demand, windfall taxes and price caps — Jorgensen said “these are indeed some of the things that we are looking at.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.“Even if peace is here tomorrow, still, we will not go back to normal in the foreseeable future,” he added. “The crisis of 2022 was primarily a gas crisis, whereas we now, of course, are facing a broader range of problems.”His comments, following an emergency video meeting of energy ministers, highlight how much European countries fear the energy shock gripping Asia is spreading west. In a letter to member states this week, Jorgensen urged governments to take steps to save energy, particularly in the transport sector, as well as urging refineries to postpone non-essential maintenance.Still, EU member states disagree on the extent to which to intervene in the market. A group of nations including Germany, the Netherlands and the Nordics urged the EU at the meeting to refrain from stepping into the market. Others, including France, called for redistribution of windfall profits and subsidies for the power sector, according to a person familiar with the matter.The European Commission announced that it would put forward an EU “save and protect” communication that will focus on energy savings across sectors, the person said, asking not to be identified because the matter is private. Germany, the Netherlands and France didn’t immediately respond to requests for comment. During the energy crisis that followed Russia’s invasion, the EU adopted laws to cut gas demand by 15%. Much of that reduction came as industrial facilities curtailed operations in response to high prices, a drag the bloc is still struggling to overcome. The EU also imposed a gas price cap and a tax on the windfall profits of energy producers.While Europe doesn’t source much of its gas from the Middle East, it still competes on global markets for alternative supplies. A widely anticipated glut in the coming years has been called into question after a key Qatari facility — the world’s largest — was attacked, and repairs are expected to take up to five years.At the same time, the outlook for the war is uncertain. US President Donald Trump criticized allies, including France, for not sufficiently helping in the war against Iran. He told countries such as the UK to “get your own oil” in a social media post.He also said on Tuesday that he expects the conflict to end in two to three weeks. Brent crude fell back below $100 a barrel in Wednesday trade. Read: Oil Slides Below $100 on Optimism Over Iran War ResolutionJorgensen said the conflict in Iran had so far added €14 billion to the cost of the EU’s fossil fuel imports. He also urged EU member states to refrain from measures that could boost demand for energy by lowering prices for consumers.“It is clear that the pressure on the world market really is what constitutes this problem and what makes it so severe,” Jorgensen said. “We are doing everything we can every day to try and limit these negative consequences in Europe.”—With assistance from Max Ramsay.(Updates with divisions between EU members in sixth paragraph.)Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.