EU prepares gas 'fist' as it moves to jointly buy fuel - Politico
Photo: LNG carrier (Getty Images)
The European Union is preparing to resume joint gas purchases at the bloc-wide level. This is Brussels' response to instability in the Middle East and the threat of an energy crisis, reports Politico.
Brussels plans to restart the AggregateEU platform, which operated in 2023. It allowed companies to pool their requests, thereby strengthening their negotiating position with foreign suppliers.
Now the EU plans to improve the program and coordinate actions with oil and gas suppliers. There will also be joint purchases of hydrogen and raw materials, as well as tighter control over the aviation fuel market.
The new approach is intended to provide bargaining power vis-à-vis Asia. A source familiar with the Commission's position told the publication.
What's wrong with the EU's plan
The idea of joint purchases is not to everyone's liking. Businesses often question the effectiveness of such measures. Critics point to the lack of transparent data and believe that EU intervention could disrupt supply chains.
European Commission President Ursula von der Leyen defends the project. At the beginning of April, she cited figures: since 2023, the platform has aggregated demand for 90 billion cubic meters of gas. However, she acknowledged that the system needs improvement.
"We do not start from scratch with this coordination in the energy sector, but we can do more and we can do better," von der Leyen said.
Nevertheless, market experts remain skeptical. Many are convinced that bilateral contracts between major players work faster. Brussels, however, insists on unity so that wealthier countries do not outbid prices from poorer neighbors.
What is the situation on the fuel market
Popular chains of Ukrainian gas stations have recently lowered prices for diesel and autogas. The cost decreased by an average of 2 hryvnias per liter.
Against the backdrop of oil and gas sanctions against Russia, China will benefit. Russia will sell gas to China at almost no cost, at least until 2029.
Meanwhile, the US has stated its readiness to quickly replace all Russian gas and oil supplied to Europe with its own energy resources if necessary.
