Russia reduces gas supplies to different EU member states

Updated: Jul 15

The action was taken in response to Shell Energy in Germany and Denmark's largest power utility refusing to pay for supplies in rubles.

Due to Orsted, Denmark's largest power wholesaler, refusing to accept payments in rubles for deliveries, Denmark has now joined the list of nations that are no longer receiving Russian natural gas. According to an announcement made on Wednesday by Russian energy giant Gazprom, supplies to Shell Energy Europe Limited in Germany have also been stopped for the same reason.

The Russian firm said in a statement that it had not received payment from Orsted Salg & Service for the gas it had supplied in April as of the end of the business day on May 31.

It further stated that in 2021, Gazprom Export provided the Danish company with 1.97 bcm of gas, or around two-thirds of the country's whole gas consumption.

According to the deal between Gazprom Export and Shell Energy Europe Limited for the sale of gas to Germany, up to 1.2 bcm of gas can be produced annually, according to Gazprom.

Only 2.6% of the 95 bcm of natural gas that Germany uses annually is supplied by Shell.

According to the corporation, "Shell continues to work on a gradual disengagement from Russian hydrocarbons."

The majority of Germany's major gas consumers, such as Uniper and RWE, have endorsed the Kremlin's ruble payment plan.

The new Russian payment system mandates that gas purchasers from "unfriendly" nations that have sanctioned Moscow register accounts with Gazprombank. They can then deposit money in the currency of their choice, which the bank translates to rubles and sends to the enormous energy company in Saint Petersburg.

Following their refusal to comply, the Russian energy behemoth has halted gas deliveries to Bulgaria, Poland, Finland, and the Netherlands. The Russian Energy Ministry reports that roughly a dozen European businesses have already opened ruble accounts.

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