Russia’s Gazprom cut off gas supplies to Poland and Bulgaria over non-payment in rubles
Russia Gazprom had cut off gas supplies on Wednesday (27 April 2022) to Poland and Bulgaria over their failure to make payments in Russian rubles, and had warned that siphoning of any gas supplies meant for other European customers will be responded with a reduction of the similar amount in gas supply to those customers – essentially making the siphoning, a form of stealing from Poland and Bulgaria’s European partners.
Bulgaria made their payment in dollars in April and had accused Gazprom of violating existing agreements.
“Bulgaria will not negotiate under pressure and will not bow its head”
Bulgarian Energy Minister, Alexander Nikolov, according to Bloomberg reports
“We will not succumb to such a racket!”
Bulgarian Prime Minister, Kiril Petkov
The Bulgarian Energy Minister added that his country had secured gas through alternative sources and that there will be no need for consumption restrictions as of now.
Bulgaria has started receiving Russian gas through the TurkStream pipeline from 1 January 2020, after signing a 1.2 billion USD contract with Saudi-led group Arkad to build the 474km pipeline across its territory in September 2019, just 2-3 years ago.
In Bulgaria natural gas is primarily utilized in industrial processes, with a modest role in the power generation mix and very low consumption in the residential and commercial sectors. Some 10% of industrial consumers represent 80% of demand, 19 with the largest individual industrial consumers in chemicals, fertilizers, and glass sectors, as well as some large industrial CHPs. (source: trade.gov)
Poland’s Prime Minister Mateusz Morawiecki told his parliament that he think the suspension was revenge for the new sanctions imposed against Russia and vowed that Poland will not be cowed by the cutoff. He also announced that the country is safe from an energy crisis due to years of effort to secure gas from other countries.
According to the AP, Poland said it had received notice that Gazprom was cutting off its gas supplies for failing to adhere to the demand to pay in Russian rubles. Poland’s gas company, PGNiG, said the gas supplies from the Yamal pipeline stopped early Wednesday, as Gazprom had warned they would.
“Poland has the necessary gas reserves and sources of supply that protect our security – for years we have been effectively independent from Russia. Our warehouses are 76% full. There will be no shortage of gas in Polish homes.”
Poland Minister for Climate and Environment, Anna Moskwa
According to a report from AFP, European Commission head Ursula von der Leyen announced that Poland and Bulgaria will now receive gas from the EU neighbors.
“We will ensure that Gazprom’s decision has the least possible impact on European consumers…
President of the European Commission, Ursula von der Leyen
…Today, the Kremlin failed once again in its attempt to sow division among member states. The era of Russian fossil fuels in Europe is coming to an end.”