Jakarta, CNBC Indonesia – Russia officially stopped its gas supply to two European countries, namely Poland and Bulgaria, Wednesday (27/4/2022). This happened because of the refusal of both countries to pay in rubles.
This is said to have created confusion in the European Union (EU). So far, Europe does depend on Russia for about 40% of its natural gas, 27% of its oil and 46% of its coal.
Polish President Andrzej Duda said the Kremlin’s move violated “basic principles of the law”. Bulgarian Energy Minister Alexander Nikolov said gas was being used by Russia as a “political and economic weapon”.
European Commission President Ursula von der Leyen even gave an official condemnation and called it blackmail. “Another attempt by Russia to use gas as a means of extortion,” he was quoted as saying ReutersThursday.
British Deputy Prime Minister Dominic Rabb said Russia’s move would increase the country’s status to “Economic Parish”. Paria refers to the lowest caste.
Gas to Poland flows through the operator PGNiG. Meanwhile gas to Bulgaria flows through Bulgaria.
Both have been informed of the termination since Tuesday. quote CNBC International, this is the first time the suspension has actually been carried out by Russia after the attack on Ukraine, 24 February.
The Russian state-owned gas company Gazprom has also given an official statement. Natural gas prices soared in Europe on Wednesday morning local time, with the Dutch wholesale gas contract, Europe’s benchmark, up 24.2% to 115.75 euros (US$ 122.40) per megawatt hour.
Collect CNN International, this severance led the EU to promise Poland and Bulgaria to receive gas from other EU neighbors and international partners. Even EU countries have met in the gas group to provide substitute fuels for both.
On the other hand, Kremlin spokesman Dmitry Peskov dismissed the European accusations. According to him, Russia is a reliable energy supplier.
Not only Bulgaria and Poland, other countries in Europe have the potential to have the same fate. At least, this is the head of gas analysis at data intelligence firm ICIS, Tom Marzec-Manser.
“This is a seismic warning shot by Russia,” he said.
“Poland has had an anti-Russian and anti-Gazprom stance for several years. This doesn’t apply to Bulgaria, but seeing Bulgaria also cut off is a development in itself.”
Some observers considered Russia’s move risky for Europe. Deutsche Bank chief financial officer James von Moltke called Russia’s move a “worrying sign”.
“While it hasn’t had an immediate impact yet, it will be a risk to the overall outlook,” he stressed.
The International Monetary Fund (IMF) projected earlier this month that the euro area will grow 2.8% in 2022. This is more than 1 percentage point lower than previous estimates made before Russia invaded Ukraine.
Someone Went and Pay Rubles?
Meanwhile, the split seems to be showing in the EU. Some countries may pay for future gas supplies under the scheme announced by Moscow, in rubles.
Such as Hungary and Uniper UN01.DE, Germany’s main importer of Russian gas. Hungary itself is now led by Prime Minister Victor Orban, who is close to Putin, while Germany has shouted it cannot boycott Russian gas completely, as it would destroy its economy.
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