‘Blackmail’, says EU as Russia cuts gas supply to Poland and Bulgaria
OTHERS NOT PAYING FOR GAS IN RUBLES MAY FACE THE SAME OUTCOME: RUSSIA EU WARNS RUSSIAN GAS BUYERS THAT RUBLE PAYMENTS BREACH SANCTIONS
Russia’s Gazprom halted gas supplies to Poland and Bulgaria on Wednesday over their failure to pay in rubles, cranking up an economic war with Europe in response to Western sanctions imposed for Moscow’s invasion of Ukraine.
Kremlin spokesperson Dmitry Peskov warned that other European Union customers may be cut off from Russian natural gas supplies if they refuse to pay in ruble. “When the payment deadlines approach, if some consumers decline to pay under the new system, the president’s decree of course will be applied,” Peskov said.
The state-controlled gas pipeline monopoly, which supplies Europe with about 40 per cent of its gas needs, said transit via Poland and Bulgaria — whose pipelines supply Germany, Hungary and Serbia — would be cut if fuel was siphoned off illegally.
The European Commission has accused Moscow of blackmail. European Commission President Ursula von der Leyen warned companies not to bend to Russia’s demands to pay for gas in rubles. “Companies with such contracts should not accede to the Russian demands,” von der Leyen said. “This would be a breach of the sanctions so a high risk for the companies.”
Germany said it was prepared to back a gradual ban on Russian oil. Berlin would support a phased approach to targeting oil rather than some of the other options that have been discussed, such as a price cap or payment mechanisms to withhold parts of Moscow’s revenue, according to people familiar with talks among EU ambassadors.
Oil prices dipped on Wednesday. Erasing earlier gains, Brent crude futures dipped $1.34, or 1.3 per cent, to $103.65 a barrel by 1353 GMT. US West Texas Intermediate crude futures dropped $1.50, or 1.5 per cent, to $100.20 a barrel. US natural gas futures jumped about 5 per cent to oneweek high on expectations US liquefied natural gas will remain near record highs for months.
But German Economy Minister Robert Habeck said the government’s forecast for this year does not assume a Russian energy embargo or blockade and the economy would tip into recession if either of those transpired.