Published: July 19, 2023 5:17 am
Author: RT
Brussels hopes the crisis measure will help member states negotiate better prices with suppliers
EU member states are planning to make joint gas purchases a permanent energy strategy, as the bloc seeks to ensure sufficient fuel deliveries, Bloomberg reported on Monday.
In December, the EU approved the creation of a mechanism for joint purchases of gas within the bloc in order to combat the energy crisis, which occurred as a result of the sanctions on Moscow and the decision to abandon Russian energy. The tool will reportedly give EU member states the ability to negotiate better prices and thereby reduce the risk of them outbidding each other in the global market.
The platform for joint purchases will exclude Russian gas, Bloomberg said, citing a European Commission document.
The bloc’s executive branch believes the new tool will help the EU refill gas storages for next winter via the collective platform. Participation in the joint mechanism will be voluntary, except in the event of another energy crisis in which the EU authorities could require member states to pool their demand, according to the outlet.
READ MORE: French energy giant warns of winter gas shortages
Earlier this month, the EU announced the second international tender under the joint gas buying platform, with buyers scheduling deliveries between August 2023 and March 2025, according to European Commission Vice President Maros Sefcovic.
While member states are hoping that the joint gas purchase scheme will help lower prices, economists worry that, with demand for gas in the EU as high as it is, bulk buying could actually push prices higher instead of reducing them.
For more stories on economy & finance visit RT’s business section
