As part of the sanctions imposed on the Russian Federation as a result of the Russo-Ukrainian War, on 3 December 2022, the European Union (EU) agreed to cap the price of natural gas in order to reduce the volatility created by Russia in the gas market.
In 2021 the EU imported 83% of its natural gas, but following the invasion of Ukraine gas imports from Russia have fallen, partly due to the increasing cost, partly because of reductions in supply from Russia, partly through reduction of consumption and partly because of a desire to move away from Russia's Gazprom as a supplier.[1] The main effect on Russia, would be the desire of the EU to move quickly away from buying any gas from Russia.
The price cap would become effective from 15 February 2023 at €180 per megawatt-hour.[2]
FT1912 was invoked but never defined (see the help page).