EC expected to scrap plan for Russian gas price cap

The European Commission (EC) is retreating from the introduction of a price ceiling for Russian gas, but plans to enforce the taxation of windfall profits of energy companies. This according to a report by the British newspaper The Guardian, citing a leaked document. After member state representatives failed to agree on further restrictions last week, the latest proposal reportedly does not include a price cap on Russian gas or imported gas. The text of the leaked document, which The Guardian points out is only a draft and could still change, shows that the Commission doubts it could get enough support for the price cap from member states such as Hungary, Slovakia and Austria, due to fears that Moscow would respond by completely halting gas supplies which would send the countries into recession. According to the report, however, the EU is expected to go ahead with its plans to introduce a windfall tax on fossil fuel producers and a separate cap on the profits of low-carbon electricity producers.