Will there be the 5th EU country to be cut off gas?

The reason why Russian energy company Gazprom cut gas with Netherlands because partner GasTerra does not accept payment in rubles according to the decree issued by Russian President Vladimir Putin.

“As of the end of the working day 30-5 (the payment term is in accordance with the contract), Gazprom Export has not yet received payment from GasTerra for the April gas supply” – radio station RT cited Gazprom’s announcement and added that the gas supply shutdown will apply from May 31 until payment is made according to the process.

Earlier, GasTerra confirmed that it will not pay for gas using the method offered by Russia, which is to set up an account at Gazprom bank and then transfer euros into it to be exchanged for rubles.

“Gazprom stopped delivering gas, that means about 2 billion m³ The gas under the contract between the Dutch company and the Russian company will not be distributed between now and early October,” added GasTerra.

GasTerra also confirmed that it was prepared for the scenario where Russia cut off supply to the Netherlands by buying gas from other sources.

The Dutch company GasTerra BV said that Russia has stopped supplying them with gas since May 31. Photo: GASTERRA.NL

Thus, the Netherlands is the fourth country in Europe that Gazprom recently cut off gas exports, after Bulgaria, Poland and Finland. The reason is that these countries all refuse to pay for gas purchases in rubles at the request of Russia.

The list is probably going to continue as Denmark risks becoming the next country to be stopped by Russia when burning, according to Bloomberg.

Danish energy company Orsted announced on May 30 that it was not legally obligated to pay in rubles when buying Russian gas. Orsted’s statement came just a day before the deadline to fulfill its payment obligation to Gazprom.

“We have no contractual legal obligation to do so and we have repeatedly informed Gazprom Export that we will not do so” – Bloomberg quoted the statement of the Danish company emphasized.

Therefore, in his announcement, Orsted also stated that they would be cut off by Gazprom after the deadline. “There is a risk that Gazprom Export will stop supplying gas to Orsted. This would be a breach of contract.”

The Danish company announced that it will continue to pay in euros, emphasizing that the company has not opened a ruble account. “We are also prepared for the sudden cessation of gas supply by Gazprom. We have already filled up the gas storage facilities in Denmark and Germany” – emphasized Ørsted.

According to the Bruegel economic organization, about 4% of Denmark’s total energy consumption and about 2% of the Netherlands’ total energy consumption is Russian gas.