MOSCOW, December 23. /TASS/. Europe’s decision to introduce the mechanism of the gas price ceiling may eventually lead to the resource making its way to the Asian-Pacific markets, whereas Europe itself will face a supply deficit, Russian Prime Minister Alexander Novak said in an interview aired by the Rossiya-24 TV news channel on Friday.
"As of today, we see a shortage and deficit of gas on the global market. This gas may flow to the Asia-Pacific Region, and the European market will face a deficit, with nothing to cover it, and the prospects of further price formation unclear. Suppliers will leave for other electronic trade exchanges with no such restrictions, where the price will be based on the market," he explained.
The market still does not know how this mechanism will work, and what it will lead to, Novak noted. "In the event of such restrictions the resource will find its way to other markets, which means the liquidity of such a market may go down substantially. I’m talking about the European market. Neither traders, nor suppliers fully understand how it will work or whether it will work at all," he said.
Though the Europeans blame Moscow for the increase in prices, it is, in fact, their cap decision that will primarily affect European consumers and suppliers: companies from Norway, Algeria, the UK, and the US, which deliver gas to the European market, the Russian deputy PM pointed out.
Russian energy resources are still demanded globally despite the introduction of supply bans, he added.
"We maintain that Russian energy resources are in demand, despite the bans on supply, the so-called embargo, to the US, the UK, Canada, Europe," Novak said.