BRUSSELS (AP) — European Union governments agreed Tuesday to reduce consumption of natural gas this winter to protect themselves against any further supply cuts by Russia amid its invasion of Ukraine, although the measure contains exemptions for some countries.
EU energy ministers approved a draft European law designed to lower demand for gas by 15% from August through March. The legislation entails voluntary national steps to reduce gas consumption, but if that does not yield enough savings, mandatory actions in the 27-member bloc would be triggered.
“I know that the decision was not easy, but I think, at the end, everybody understands that this sacrifice is necessary. We have to, and we will, share the pain,” Czech Industry Minister Jozef Sikela said after chairing the meeting in Brussels.
European Commission President Ursula von der Leyen welcomed the move, saying in a statement that “the EU has taken a decisive step to face down the threat of a full gas disruption” by Russian President Vladimir Putin.
The energy ministers approved the compromise legislation a day after Russian energy corporation Gazprom said it would cut gas flows through the Nord Stream 1 pipeline to Germany to 20% of capacity starting Wednesday. Natural gas prices jumped Tuesday to their highest level since early March, according to Europe’s TTF benchmark, and more than five times what they were a year ago.
Since Russia invaded Ukraine in late February and the West moved to punish Moscow by imposing economic sanctions, 12 EU countries have faced halts to, or reductions in, their Russian gas deliveries.
Russia supplied about 40% of Europe’s natural gas before the war, but that has dropped to about 15%, sending prices through the roof and straining energy-intensive industries. Companies warn that they often can’t switch overnight to other energy sources.
The disruptions in Russian energy trade with the EU already are stoking inflation to record levels in Europe and threatening to trigger a recession just as the bloc was recovering from a pandemic-induced slump.
The energy squeeze also is reviving decades-old political challenges over policy coordination. While the EU has gained centralized authority over monetary, trade, antitrust and farm policies, national sovereignty over energy issues still largely prevails.
Under the the ministerial agreement that was sealed in less than a week, the EU’s member nations tries are free to decide how best to meet the target of cutting 15% of their average annual gas use over the last five years.
