Ukraine war: Russia halts gas supplies to Poland and Bulgaria

Russian state-owned energy giant Gazprom had already informed the two EU and NATO member nations that gas supplies will be suspended on Tuesday

FP Staff April 27, 2022 16:53:55 IST
Ukraine war: Russia halts gas supplies to Poland and Bulgaria

Russia has halted gas supplies to Bulgaria and Poland on Wednesday for rejecting its demand to pay in roubles, taking direct aim at European economies in its toughest retaliation so far against international sanctions over the war in Ukraine, reports several media organisations.

Russian state-owned energy giant Gazprom had informed the two EU and NATO member nations that gas supplies will be suspended starting Wednesday, their governments said.

The suspensions would be the first since Putin’s announcement last month that “unfriendly foreign buyers” would have to transact with Gazprom in rubles instead of dollars and euros. Only Hungary has agreed to do so, with other countries rejecting the demand as an unacceptable, one-sided breach of contracts and a violation of sanctions.

If deliveries are halted to other countries as well, it could cause economic pain in Europe, driving natural gas prices up and possibly leading to rationing — but it would also deal a blow to Russia’s own economy.

Wednesday’s cutoffs will affect deliveries of Russian gas to Poland through the Yamal-Europe pipeline, according to Polish state gas company PGNiG, and to Bulgaria via the TurkStream pipeline, that country’s Energy Ministry aaid.

The Yamal-Europe line carries gas from Russia to Poland and Germany, via Belarus. Poland has been receiving some 9 billion cubic meters annually, fulfilling some 45% of the country’s need.

PGNiG said it was considering legal action over Moscow’s payment demand, reports AP.

But Climate Minister Anna Moskwa said Poland is prepared to make do after having worked to reduce its reliance on Russian energy sources. Several years ago the country opened its first terminal for liquefied natural gas, or LNG, in Swinoujscie, on the Baltic Sea coast, and later this year a pipeline from Norway is to become operational.

“There will be no shortage of gas in Polish homes,” Moskwa tweeted.

Bulgaria said it was working with state gas companies to find alternative sources and that no restrictions on domestic consumption would be imposed for now, even though the Balkan country of 6.5 million people meets over 90% of its gas needs with Russian imports.

With input from agencies

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