Russia halts gas deliveries to Poland and Bulgaria

Poland refuses to pay for Russian gas in rubles, as a result of which Gazprom is now plugging the gas to the country. Both sides have now confirmed the news. Updated.
Polish Prime Minister Mateusz Morawiecki has informed that the nation's gas supplies are steady despite Russia's halting of gas flows. | Photo: Wolfgang Rattay/REUTERS / X00227
Polish Prime Minister Mateusz Morawiecki has informed that the nation's gas supplies are steady despite Russia's halting of gas flows. | Photo: Wolfgang Rattay/REUTERS / X00227
BY MARKETWIRE & RITZAU, TRANSLATED BY CHRISTOFFER ØSTERGAARD

Russia halts gas deliveries to Poland and Bulgaria Wednesday, report Polish gas company PGNiG and Bulgarian counterpart Bulgargaz Tuesday.

The two companies have received a notice from the state-owned Russian company Gazprom informing them of a complete cessation of gas supplies through the Yamal pipeline.

”On April 26, 2022, Gazprom informed PGNiG of its intention to completely suspend deliveries under the Yamal contract [...] on April 27,” the Polish company reports.

This arises from the fact that PGNiG refuses to pay for gas in rubles as demanded by Russia. The Polish company argues that Russia’s demand for payment in rubles is a breach of the contract between the two.

This is most likely the same reason behind the halt of gas deliveries to Bulgaria, but this has yet to be disclosed.

Gazprom hasn’t publicly confirmed that the gas faucets will be turned off Wednesday.

But a source in the company told Russian news agencies Tuesday evening that ”Poland has to pay for gas supplies according to the new payment procedure.”

The governments in Poland and Bulgaria both report that they were prepared for Russian gas deliveries being suspended and that they have taken proper precautions.

”There will be no shortage of gas in Polish homes,” writes Polish Minister of Climate Anna Moskwa on Twitter, according to news agency AFP:

”Since the first day of the war we have declared that we are ready for full independence from Russian raw materials.”

Polish gas inventories are 76 percent full, and there will be no shortage of gas in the country, assures Prime Minister Mateusz Morawiecki.

PGNiG also adds that Poland is prepared and able to receive gas supplies from other suppliers.

All deliveries to customers in Poland will continue, the company assures.

After the EU’s sanctions against Russia due to the invasion in Ukraine on Feb. 24, Russian President Vladimir Putin has demanded payment in rubles.

Western nations have spurned this demand, citing contractual requirements for euro and dollar payments.

Ørsted is one of the companies that have rejected the demand for payment in rubles. The Danish utility’s contract with Gazprom runs until 2030.

Last year, around 40 percent of gas deliveries to the EU originated from Russia.

Gazprom confirms halting gas supplies

The Russian gas giant confirms that it has suspended gas deliveries to Poland and Russia because the two nations refuse to pay in rubles.

Gazprom informs that gas supplies will not resume until the two EU nations concede to the demand of ruble payment, writes Reuters.

The Russian government has threatened to plug gas flows to the rest of EU as well.

The demand has strengthened the Russian currency, which took a steep dive in the wake of the sanctions imposed by the West. Since then, the ruble has rebounded.

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