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Suspension of Russian gas in Poland and Bulgaria: Von der Leyen reacts

The Polish gas company PGNiG confirmed on Wednesday April 27 “the complete cessation of the supply of natural gas supplied by Gazprom under the Yamal contract”. “The situation does not affect current supplies to PGNiG customers who are receiving fuel as requested,” the company said in a statement.

The suspension of Russian gas deliveries to Bulgaria and Poland, for not having paid in rubles as demanded by Moscow, is the consequence of unprecedented hostile acts against Russia, the Kremlin said on Wednesday. “The conditions that have been set are part of a new payment method developed after unprecedented unfriendly acts” following the Russian offensive in Ukraine, Kremlin spokesman Dmitry Peskov said.

According to PGNiG, the supply stop “is a breach of the Yamal contract” and the company reserved “the right to seek repairs.” Tuesday evening the Polish group said it had been informed of the shutdown by Gazprom, the Russian gas company having officially confirmed it on Wednesday morning. In a statement, Gazprom said it had notified the Polish company and the Bulgarian company Bulgargaz of the “suspension of gas deliveries from April 27 and until payment is made” in rubles.

The Bulgarian Prime Minister denounced “unacceptable blackmail” after the suspension by the Russian group Gazprom of all its gas deliveries to this Balkan country as well as to Poland.

EU says it is ‘prepared’ for Russian gas cut

The EU had been “prepared” for an interruption of Russian gas and is preparing “a coordinated response”, European Commission President Ursula von der Leyen said on Wednesday, after Gazprom suspended deliveries to Bulgaria and the Poland. “Gazprom’s announcement is another attempt by Russia to gas blackmail us. We are prepared for this scenario. We are developing our coordinated European response. Europeans can be sure that we stand united and in solidarity with the Member States affected”, she reacted on Twitter.

“High” legal risk

European companies agreeing to pay Russian gas in rubles, as demanded by Moscow, violate EU sanctions and expose themselves to “high” legal risk, also announced Ursula von der Leyen. “About 97% of contracts (between EU groups and Russian gas suppliers) provide for payment in euros or dollars (…) Companies with such contracts must not give in to Russia’s demand , it would be to contravene the sanctions” imposed by the Twenty-Seven, she added.

Bulgaria and Poland are now supplied with gas “by their neighbors in the European Union”, after Gazprom suspended Russian deliveries, European Commission President Ursula von der Leyen said on Wednesday. “We will ensure that Gazprom’s decision has the least possible effect on European consumers,” assured the head of the European executive in a brief speech to the press in Brussels. “The measure taken by Russia affects Russia itself. The Kremlin is hurting the Russian economy because they are depriving themselves of significant income,” she said.

Russian President Vladimir Putin said last month that Russia would only accept payment for gas deliveries in its national currency, in reaction to sanctions imposed to punish the Kremlin offensive in Ukraine. The war in Ukraine revealed the EU’s dependence on Russian gas, which globally represents 45% of its imports.

A coordination group meeting

Bulgaria and Poland, however, say they are prepared to obtain the missing gas from other sources. “We have endeavored to ensure alternative deliveries and the best possible storage levels across the EU,” Ursula von der Leyen explained in a statement.

“Member States have contingency plans in place for such a scenario and we have worked with them in coordination and solidarity”, she added, announcing that a meeting of the “Coordination Group for the gas” was taking place “at this very moment”. The president of the European executive deemed this “unilateral cessation” of deliveries “unjustified and unacceptable”. “This once again shows Russia’s unreliability as a gas supplier,” she said.

(With AFP)

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