Russian energy giant Gazprom said on Wednesday it had halted gas supplies to Bulgaria and Poland for failing to pay for gas in roubles, the Kremlin’s toughest response yet to sanctions imposed by the West over the conflict in Ukraine, Reuters reports.
It was the first time Russia has cut off gas to European customers since Moscow launched its invasion on February 24th.
“Gazprom has completely suspended gas supplies to Bulgargaz and PGNiG due to absence of payments in roubles,” Gazprom said in a statement, referring to the Polish and Bulgarian gas companies.
PGNiG confirmed its supplies from Gazprom had been cut but said it was still supplying its own clients as needed. “Cutting gas supplies is a breach of contract and PGNiG reserves the right to seek compensation and will use all available contractual and legal means to do so,” the company said.
Poland and Bulgaria, both NATO and EU members, had earlier said Russia would stop supplying gas to them on Wednesday.
Supplies from Gazprom meet around 50% of Poland’s consumption. Poland said it did not need to draw on reserves and its gas storage was 76% full.
The executive director of Bulgarian gas network operator Bulgartransgaz had told Reuters supplies to Bulgaria were still flowing. Hungary and Austria also said gas supplies were normal.
Russia’s energy exports have largely continued since the war began, an exception to sanctions that have otherwise cut off Moscow from much of its trade with the West.
Ukraine has accused Russia of blackmailing Europe over energy in an attempt to break its allies as fighting entered a third month. Moscow has demanded that European countries pay for gas in roubles. Buyers say this violates contracts which call for payment in euros.
Andriy Yermak, chief of staff to Ukraine’s President Volodymyr Zelenskiy, said Russia was “beginning the gas blackmail of Europe. Russia is trying to shatter the unity of our allies.”
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