It’s blackmail says Europe as Kremlin turns off gas

RUSSIA was accused of blackmailing governments and millions of families across europe by turning off the gas taps yesterday.

The state-owned gas giant Gazprom blocked supplies to Poland and Bulgaria, which initially sent wholesale prices in europe soaring by up to 20 per cent.

The decision represents a dangerous escalation in the economic war with the West, triggered by the Kremlin’s illegal invasion of its neighbour.

Moscow claimed the halt of natural gas supplies via the Yamal-europe pipeline, which runs through Belarus, was a result of ‘unfriendly’ actions towards Russia.

Putin’s spokesman Dmitry Peskov said both countries had refused Russian demands to pay in roubles, a move designed to prop up the heavily sanctioned currency.

he warned that other european customers may also see the taps turned off if they too refuse to pay in roubles next time payment is due.

As a result, a number of countries have drawn up plans to ration supplies, which could see major industry and manufacturers ordered to shut down to protect gas for homes and prevent blackouts.

The Russian move is forcing govern

‘We won’t give in to such racketeering’

ments across europe to speed up a switch to alternative supplies. Western officials say that this represents a major strategic failure for Moscow.

One UK official said: ‘This will be one of the major strategic developments from this campaign and it will be a failure for Russia because it will reduce its income and also compromise its offensive capability.

‘This is one of the costs we are inflicting on Russia. Long-term sanctions will have the same effect. The Prime Minister has said Russia must be seen to have failed.’

Britain’s Deputy Prime Minister Dominic Raab slammed Russia’s decision, saying it will add to its status as an ‘economic and political pariah’.

President of the european Commission Ursula von der Leyen said Russia’s attempts at ‘blackmail’ were doomed to fail. She called it ‘unjustified and unacceptable’ and said it pointed to Russia being an unreliable gas supplier.

The eU was prepared for this scenario and contingency plans are in place to get gas from alternative sources and maintain maximum gas storage levels. Poland and Bulgaria are already receiving gas via their eU neighbours, including Greece.

Polish Prime Minister Mateusz Morawiecki was applauded by MPs in parliament when he said the ‘blackmail’ would have no effect. Bulgarian Prime Minister Kiril Petkov said that it was a ‘gross violation’. And despite Bulgaria taking nearly 80 per cent of its gas from Russia, he added: ‘We won’t give in to such racketeering.’

While there was a 20 per cent price hike in european wholesale gas prices in early trading, much of this fell away later in the day.

But despite many countries in europe rallying together, four major gas trading companies have bowed to pressure to pay for Russian supplies in roubles through back channels, a report by Bloomberg claimed yesterday.

The names of the buyers and countries have not been revealed. however Slovakia, which is heavily reliant on Russian gas, previously suggested it may be forced to comply with demands to pay in roubles.

But Mrs von der Leyen warned that this would breach sanctions and weaken the collective Western response.