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Russia will stop supplying gas to the Netherlands from May 31

Russia’s Gazprom Export announced on May 30 that it would suspend gas supplies to GasTerra of the Netherlands from May 31 because the deliveries in April were still unpaid and the company refused to pay in rubles. .

“As of the end of the working day 30/5 (the payment term as specified in the contract), Gazprom Export has not yet received payment from GasTerra for the gas supply in April. In this regard, Gazprom Export has notified GasTerra of the cessation of gas supplies from May 31 until payment is made according to the stated procedure,” the Russian energy company said in a statement.

Earlier, Dutch company GasTerra informed Gazprom Export that it did not intend to pay for gas purchases in rubles, arguing that doing so would violate Western sanctions.

According to customs data, Russia exports about 6.7 billion cubic meters of natural gas to the Netherlands in 2021.

Russia’s new payment mechanism requires gas buyers from “unfriendly” countries that have imposed sanctions on Russia to open an account at Gazprombank. They can then make a deposit in the currency of their choice, which is converted to rubles by the bank and transferred to the supplier.

Gazprom recently suspended gas exports to Bulgaria, Poland and Finland after these countries refused to pay in rubles. Denmark also faces supply cuts after rejecting the need to pay in Russian currency.

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