Only the price cap for oil export could affect Russia, bet natural gas should have a minimal price, reports Estonian media ERR News.
Estonian expert Andres Mäe told the media that only the price cap could somehow affect Russia’s actions. He pointed out that the price cap must be considered around 30 to 40 dollars per barrel. It would allow companies to continue operations while at the same time stopping the money flow to the Russian state budget.
As for natural gas, expert stated that there’s a different situation: «It is not as relevant in the case of natural gas because Europe is not buying gas from Russia anymore. A few exceptions remain that do not affect the big picture.»
Mäe told in an interview with Vikerraadio that gas should have a price floor – minimum price to avoid overly cheap gas. As he said, it is for Europe’s own sake. Very cheap gas from Russia means that there are no other players in the market, and therefore any alternatives are unexistent. If Europe is dependent on gas from Russia, the money flow in the future can renew and tempt future leaders into all manner of further ventures, said the expert.
Estonian expert also told that the falling of fuel prices is the result of dwindling demand in the world market, but he believes that the price drop won’t last.