Russia to halt gas supply to Netherlands as Dutch company refuses to pay in rubles

Russian energy firm Gazprom will cut off gas supplies to Nerlands' partly state-owned energy firm GasTerra on May 31 after Dutch company refused to pay in rubles. Notably, following Russia's invasion of Ukraine on February 24, Moscow has asked clients from "unfriendly countries," including EU member states, to pay for gas in rubles, allowing it to avoid Western financial sanctions against its central bank.

GasTerra, a Dutch energy company, announced on May 30 that it h refused to pay for Russian gas in rubles, after which Gazprom informed it that deliveries would cease on May 31, resulting in approximately 2 billion cubic metres of gas not received under current contract.

GasTerra stated, "In response to this decision by GasTerra, Gazprom has announced that it will discontinue supply with effect from May 31, 2022."

According to GasTerra, Russian energy behemoth's decision implies that two billion cubic metres of gas will not be provided to Nerlands between May and October, despite fact that it "has anticipated this by purchasing gas elsewhere." Furr, GasTerra stated it h repeatedly asked Gazprom to here to contractually agreed payment structure and delivery responsibilities, but that it h been unsuccessful.

Denmark's Russian Gas supply at 'risk' over ruble payment dispute

company went on to say that it didn't know wher European market could handle loss of se volumes without serious consequences. Furrmore, Orsted, Denmark's largest gas supplier, warned on May 30 that re was "a risk" that Gazprom would stop supplying gas due to its decision to continue paying in euros before end of month payment deline. Notably, Nerlands and Denmark would join Poland, Bulgaria and Finland in having ir gas supplies cut off by Moscow.

countries account for 16% of volumes that Russia was contracted to deliver to Europe at beginning of year, but must now be sourced elsewhere. Russian President Vlimir Putin signed a decree at end of March requiring buyers from "unfriendly countries" to open accounts in euros and roubles with Gazprombank in Russia. transaction's counterparty was later changed to limit involvement of Russian Central Bank, which is sanctioned by EU.

Image: AP