the russian company Gazprom confirmed on Wednesday that it had “completely” suspended gas supplies to Poland and Bulgaria. for not having paid for deliveries in rubles, a demand from Moscow which it considers “unfriendly” countries.
Payments for the supply of gas from April 1 must be made in rubles, by virtue of an order of the Government of Vladimir Putinsomething that most European countries have refused to do.
“Gazprom Export notified Bulgargaz and PGNiG of the suspension of gas supply from April 27 until payment is made in accordance with the procedure established by the decree” of Putin, reported the Russian company.
Russian President Vladimir Putin ordered at the end of March that “unfriendly” countries, including the US, Canada, the UK and all member states of the European Union (EU) – in which Russian gas accounts for 40% of consumption – pay for supplies in rubles due to Western sanctions on currency transactions with Moscow for its military campaign in Ukraine.
The mechanism devised by Russia for this establishes that those countries considered hostile must open a special account in rubles and another in foreign currency at Gazprombank.
Putin’s idea was that the Russian bank would receive payment in the currency specified in the gas supply contract, the euro or the dollar, and then convert it into rubles on the Moscow foreign exchange market, the MICEX, and would deposit it in the buyer’s ruble account.
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As reported on Tuesday by the Polish state gas company Polskie Górnictwo Naftowe i Gazownictwo (PGNiG), Gazprom had informed him that the flow of gas to Poland would be interrupted this Wednesday due to his refusal to make payments in rubles.
The Polish Minister of Climate and Environment, Anna Moskwa, declared upon hearing the news that “there are no decrees of (Vladímir) Putin that are in force in Poland”, referring to Moscow’s demand that Gazprom’s foreign contractors “hostile to the Russian Federation” to pay for imported gas in rubles.
Moskwa assured this Wednesday on Polish radio that “stocks of gas stored in Poland are around 80 percent, which is a lot. At the moment, there is no need to look for new supplies: we have LNG supplies, we have the Czech interconnector, and at some point we would turn to the Lithuanian interconnector“.
“There will be no shortage of gas, supplies are assured,” the minister emphasized. For its part, the company PGNiG reported on Tuesday in a statement that the cut in Russian gas imports was planned since last Fridaythe day that the Russian deadline to start paying the energy bill in rubles ended.
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Therefore, the company will take the appropriate measures to restore the delivery of natural gas under the agreed conditions and reserves the right to claim its contractual rights.
PGNiG claimed in a statement that “the suspension of gas supply is a breach of contract.”
The Polish government published on Tuesday a list with the names of 50 Russian companies and individuals with commercial interests in Poland that will be subject to sanctions. The affected companies, among which is the Polish subsidiary of Gazprom, will have their funds and economic resources frozen and their rights to shares and dividends will be cancelled.
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New threat of gas cuts
It is not about blackmail (…) We are categorically against that statement.
The Kremlin declared this Wednesday, after the cut of Russian gas supplies to Poland and Bulgaria, that shipments will also be interrupted for other countries if they do not accept the new payment mechanism in rubles.
“As payment time approaches and if consumers reject the new payment system, the presidential decree will be implemented“Russian presidential spokesman Dmitri Peskov said in his daily telephone press conference.
Peskov categorically denied that the interruption of supplies is blackmail, as described by the president of the European Commission, Ursula von der Leyen.
Dmitri Peskov added that European countries were warned in advance that Russia would move to a new payment system in response to community sanctions on Moscow and the blocking of the country’s funds abroad.
Von der Leyen assured this Wednesday that the European Union (EU) has contingency plans for possible gas cuts from Russia after the suspension of supplies to Bulgaria and Poland for not paying in rubles.
“Gazprom’s announcement that it will unilaterally suspend gas delivery to customers in Europe is yet another attempt by Russia to use gas as a blackmail tool,” von der Leyen said in a statement.
The president of the Community Executive added that the Moscow maneuver “shows once again the unreliability of Russia as a gas supplier” and assured that the European partners are “prepared for this scenario (…) unjustified and unacceptable”.
The Kremlin representative replied to Von der Leyen that Russia remains a reliable supplier and that if the countries affected by the cuts agree to pay in rubles, supplies would resume.
Peskov insisted that payment in rubles does not imply “any difficulty”, nor does it raise the price of supplies. “De facto, nothing changes for buyers, the only requirement is that they open two new accounts at Gazprombank”, an entity in charge of receiving payment in foreign currency and converting it into rubles.
Peskov stressed that the price will not vary in relation to the exchange rate and that “it has already been discussed.”
Are there countries that pay in rubles?
A total of ten European buyers of Russian gas have opened special accounts in rubles at Gazprombank and four have already made payments in the Russian currency, according to the Bloomberg agency, citing sources close to Gazprom.
The source, who requested anonymity, indicated that no more gas cuts are planned until the second half of May, when other payments for Russian fuel in rubles are due to come in.
Gazprom explained that it has “completely” suspended gas supplies to Bulgargaz (Bulgaria) and PGNiG (Poland) because it did not receive payments for deliveries in April in rubles at the end of yesterday’s business day as established by Putin’s decree of 31 December. March for “unfriendly” countries.
EFE and AFP
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