Russia to halt gas supplies to France following contract dispute

Gazprom alleges that Engie hasn’t paid what the French utility owes for deliveries in July, therefore closing gas spigots by Thursday.
Photo: GAZPROM NEFT/VIA REUTERS / X80001
Photo: GAZPROM NEFT/VIA REUTERS / X80001
BY MARKETWIRE, TRANSLATED BY CHRISTOFFER ØSTERGAARD

On Sep. 1, Russia’s state-owned Gazprom will cut off gas deliveries to French utility Engie.

This is a result of Engie reportedly failing to pay what it owes for deliveries in July, reports Gazprom in a statement issued on messaging service Telegram.

”Gazprom has notified Engie about a full cutoff of gas from Sep. 1, 2022, as the utility hasn’t paid in full for the July deliveries,” the Russian company reports.

According to Gazprom, a decree signed by Russian President Vladimir Putin is the reason for the cutoff.

This prevents the company from delivering gas to customers that have failed to make full payment within a certain period.

Gazprom adds that as of Tuesday, the company hasn’t received the money owed by Engie for the month of July.

To French news agency AFP, Engie declines to make a comment on Gazprom’s statement.

Earlier Tuesday, Engie indicated that Gazprom had been notified of immediate reductions in gas deliveries.

According to Engie, this was due to ”disagreements between the parties on the implementation of contracts”, writes AFP.

Measures had already been carried out to secure gas for Engie’s customers in the event of supplies being halted.

Gazprom’s deliveries have already dropped considerably since Russia’s invasion of Ukraine in February of this year.

Russia now accounts for just 4% of Engie’s gas imports. Prior to the war, Russian gas accounted for 17% of imports, writes news agency Reuters.

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