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Russia's state-owned energy giant PJSC Gazprom says it has halted the supply of gas to Danish utility Orsted AS and Shell Energy Europe, as expected.
Gazprom confirmed the supply stop in a statement on its website. The move comes a day after Gazprom said Orsted and Shell had refused to pay their invoices in roubles as demanded by Moscow.
Gazprom made reference to the decree by Russian President Vladimir Putin, who had said all countries the Kremlin deemed ‘unfriendly’ had to pay for energy in the Russian currency as of April, as a way to help prop up the rouble. Otherwise, deliveries would stop.
The step comes in response to tough sanctions imposed by the EU due to the war in Ukraine, launched on February 24. Gazprom emphasized that it had informed the companies affected of its plans in a timely manner.
Last year, Gazprom delivered 1.97 billion cubic metres of gas to Orsted, making up some two-thirds of Denmark's gas consumption. However, Copenhagen said there would be no supply bottlenecks. The step also affects Germany but to a far lesser extent. The contract with Shell Energy Europe provides for the delivery of up to 1.2 billion cubic metres annually to Germany, but this is just a fraction of the total amount of gas consumed in the country.
Russia's step follows a halt of gas deliveries to Bulgaria, Poland, Finland and, most recently, the Netherlands, after suppliers in those countries also refused to make the payments in roubles. As Moscow's war continues, countries in Europe are hastening to reduce their dependence on Russian energy supplies.
Shell PLC shares were 0.1% lower at 2,375.00 pence each in London on Wednesday morning.
source: dpa
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