No gas for Poland and Bulgaria: Russia threatens further delivery stops

As of: 04/27/2022 6:21 p.m

Russia is threatening to stop supplying other countries with gas if they don’t pay in rubles. But whoever pays directly in rubles violates EU sanctions, said EU Commission President von der Leyen.

After the gas supply stop for Poland and Bulgaria, Russia has threatened other countries with similar steps if they do not pay for their gas deliveries to the state-owned Gazprom company in rubles. A corresponding decree by President Vladimir Putin will be implemented, said his spokesman Dmitry Peskov, according to the Interfax news agency. In March, Putin instructed that “unfriendly states”, including all EU members, should only pay for Russian gas in rubles.

Peskow rejected accusations by EU Commission President Ursula von der Leyen that it was an “extortion tool”. Russia only requires customers to open accounts with Gazprombank to process payments. Accordingly, they could continue to pay in euros or dollars there as before, the bank would convert the amount and transfer the rubles to Gazprom. There are no additional burdens, said Peskow, not even through exchange rates.

Gazprom justified the delivery stop to Poland and Bulgaria with the fact that both had not made their payments in rubles on time. The two countries rejected this and emphasized that they had fulfilled their contractual obligations.

EU countries should help each other out in the short term

According to von der Leyen, the EU is now working to protect European consumers from the consequences of the delivery stop. “We will ensure that Gazprom’s decision has the least possible impact on European consumers,” von der Leyen said. “Poland and Bulgaria now receive gas from their EU neighbors.”

The EU countries should work together more to be able to help each other out in the short term. “This will cushion any consequences of possible gas interruptions,” said von der Leyen. EU energy ministers would hold a special meeting as soon as possible.

Alternative suppliers in sight

At the same time, the Commission is working with EU countries on alternative deliveries. “It comes as no surprise to us that the Kremlin is trying to use fossil fuels to blackmail us.” Russia’s move is another reminder that the EU must become energy independent, the commission chief said. The EU has already signed an agreement with the US for additional supplies of liquefied natural gas (LNG) this year and in the coming years. In addition, the Commission will present plans in mid-May to accelerate the energy transition.

Von der Leyen: Payment in rubles would be a violation of sanctions

Von der Leyen made it clear that paying for gas deliveries in rubles if this is not provided for in the contract violates EU sanctions. In this case, the companies involved would have to face the consequences. Around 97 percent of contracts in the EU explicitly provide for payments in euros or dollars. “The Russian side’s demand to pay in rubles is a unilateral decision and does not comply with the contracts,” von der Leyen said.

However, the Commission had previously stated that it was permitted, as requested by Moscow, to open an account with the Russian Gazprombank to pay for gas. Companies could also make a clear statement that their contractual obligations were fulfilled with the payment to Gazprombank – and not only after the conversion into rubles.

Poland sees itself prepared

Poland’s Prime Minister Mateusz Morawiecki described the delivery stop as a “direct attack” on his country. “This time Russia has pushed the limits of imperialism, of gas imperialism, one step further,” Morawiecki said in Parliament in Warsaw. With this step, Russia wants to take revenge for the fact that Poland has imposed sanctions on a number of oligarchs and companies, including the state-owned company Gazprom. Poland has enough gas supplies. The energy supply is secured

The Polish government confirmed this week that it is supplying the Ukrainian army with tanks. In addition, the country is an important transit country for arms shipments from the United States and other western countries to Ukraine.

How Europe is reacting to the Russian gas stop to Poland and Bulgaria

Michael Grytz, ARD Brussels, daily news at 12:00 p.m., April 27, 2022

Bulgaria speaks of blackmail

Bulgaria’s Prime Minister Kiril Petkov also spoke of blackmail. Russia abuses natural gas as a political and economic weapon. According to Energy Minister Aleksandar Nikolov, the country’s gas supply will be secured for at least a month. Greece has already offered its help, and a connection to the neighboring country’s gas network should be ready in June.