SAMARKAND (Pakistan Point News / Sputnik - 15th September, 2022) Speaking about the idea of a "price cap" for Russian energy resources in Europe and attempts to impose a tax on excess profits for companies, Russian Deputy Prime Minister Alexander Novak said that the price of gas would be formed via market-based mechanism, recalling that Russian contracts for gas supplies to Europe are long-term and other decisions on pricing will not be affected.
"The gas price will be formed in a market way. Based on the balance of supply and demand," he told reporters.
Novak noted that the idea only concerned spot deliveries. As for pipeline transport, the parties are guided by the terms of contracts on a long-term basis, he added.
"Basically, our contracts for gas supplies to Europe are long-term with a contract formula, so the decisions that will be made to withdraw excess profits from companies that are earning on the European market today will have nothing to do with pricing," he said.
