Russia stops gas supplies to Poland and Bulgaria from today

MOSCOW, KOMPAS.com – Energy giant Russia Gazprom (GAZP.MM) has told Poland and Bulgaria that it will stop gas supply starting today, Wednesday (27/4/2022).

Poland and Bulgaria will be the first countries to have their gas cut off by a major European supplier since Moscow began what it called a military operation in Ukraine on February 24.

The move to cut gas supplies also follows sanctions imposed by Poland on individuals and Russia.

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Russian President Vladimir Putin has demanded that countries he calls “unfriendly” agree to a scheme under which they would open an account at Gazprombank and make payments for Russian gas imports in rubles only.

Last week, the European Commission said EU companies might be able to address Russia’s request to accept gas payments in rubles without violating sanctions if they pay in euros or dollars which are then converted into Russian currency.

Poland is a staunch political opponent of Moscow.

Polish gas company PGNiG (PGN.WA), whose gas deal with Russia expires at the end of this year, said it would not comply with the new payment scheme and would not renew the contract.

PGNiG will also not extend its gas transit agreement with Gazprom in 2020.

Since then, Russian gas providers have had to take part in auctions for pipeline capacity via the Yamal-Europe pipeline from Belarus to Poland.

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Poland’s gas supply contract with Gazprom is 10.2 billion cubic meters (bcm) per year, and covers about 50 percent of national consumption.

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