Russia will cut gas supply to Poland and Bulgaria: Russia has stopped supplying natural gas to Poland and Bulgaria because they did not pay in rubles. This has created a great deal of conflict with the West.
PGNiG, Poland’s state-owned gas provider, warned on Tuesday that gas delivery along the Yamal pipeline would “totally cease” on Wednesday morning.
As you read more, you will know what caused Russia will Cut Gas Supply To Poland and Bulgaria, what will happen next, and what Poland said.
The geopolitical events that led to this crisis
Simultaneously, Russia will Cut Gas Supply To Poland and Bulgaria on Wednesday, deepening the standoff between Moscow and Europe over energy supplies and the Ukraine conflict.
Moscow has followed through on its threat to Russia will Cut Gas Supply To Poland, Bulgaria, and other countries that defy President Vladimir Putin’s new requirement that fuel be paid for in rubles.
In theory, Europe has been opposed to the proposal. Still, as payment deadlines approach, governments throughout Europe must decide whether to accept Putin’s demands or risk losing vital supplies and risking energy rationing.
Cutoffs have been looming for weeks that caused to issue that Russia will Cut Gas Supply To Poland and Bulgaria, but there was a hint this week that the EU was offering a possible way out of the impasse. The actions taken by Poland and Bulgaria against EU members make a compromise less feasible. It also eliminates sanctioning Russian gas from the EU’s toolbox.
The focus has now shifted to other European countries, particularly Germany, heavily reliant on Russian gas. Berlin did not answer right away.
If Gazprom stops supplying other countries, it might harm Europe’s economy by raising gas prices and possibly mandating rationing. Germany is especially vulnerable because it relies on Russian gas. On the other hand, cutoffs would be detrimental to Russia’s economy.
Why is Russia cutting gas off to Poland and Bulgaria?
According to the statement, Gazprom informed PGNiG on April 26 of its intention to suspend deliveries under the Yamal contract at the start of the contract day on April 27.
The news sent US natural gas futures up nearly 3% on Tuesday.
On Tuesday, Sergey Kupriyanov, the company’s spokesperson, was quoted by the Russian state news agency TASS.
Kupriyanov, on the other hand, emphasized that Poland must pay for the Russian gas supply in rubles, a demand that Warsaw has rejected.
The first payments in rubles are scheduled in late April and early May. Individual payment dates for businesses, on the other hand, have not been made public. According to Polish news outlet Onet.pl, the deadline for Poland’s largest gas company, PGNiG, fell on Friday, and Gazprom notified on Tuesday that payment was required immediately.
Other companies have more time, and many European governments and executives are still determining how to respond. Last Monday, the EU urged businesses to continue paying in euros and seek exemptions from Moscow’s regulation.
According to the rule, businesses must create two accounts with Gazprombank, one in a foreign currency and one in rubles. The foreign currency payments would be converted into rubles by the Russian bank before being sent to Gazprom PJSC, the state-owned gas company.
What to expect next?
After the pressing issue Russia will Cut Gas Supply To Poland and Bulgaria, According to a statement made by the Bulgarian energy ministry on Tuesday, Gazprom has also warned Bulgaria’s state-owned gas company, Bulgargaz, that it will cease gas supplies beginning Wednesday.
According to the energy ministry, paying in rubles is bad for Bulgaria and might have “severe ramifications” for the country.
According to the statement, the Bulgarian side “fully fulfilled its responsibilities and made all the payments required under this contract in a timely and diligent way, following its conditions” according to the statement.
Bulgarian government agencies have begun to construct alternative natural gas delivery agreements.
Russia issued an ultimatum to “unfriendly” countries last month, demanding that they pay for energy in rubles beginning April 1 or risk being cut off from crucial supplies. However, the gas flow has continued.
When Russia indicated that it would cut off its gas supply to Europe, it stated that payments for gas delivered at the announcement would be due in April or May. This is why Russia did not immediately cut off the gas supply.
President Vladimir Putin’s high-stakes ultimatum has shaken Europe, which cannot sustain its economy without Russian energy. Moscow has made it plain that it may cut off natural gas flow at some point, maybe to halt or respond to increasingly harsher Western sanctions over the Ukraine conflict.
What is the view from Poland?
Poland has been a steadfast ally of neighboring Ukraine during the Russian invasion. It is a facility where weaponry from the United States and other Western countries is delivered to Ukraine.
Last Monday, the Polish government revealed that it was supplying tanks to Ukraine’s army. On Tuesday, it issued a list of penalties targeting 50 Russian oligarchs and corporations, including Gazprom.
PGNiG, Poland’s state gas company, said Gazprom had informed it that deliveries via the Yamal-Europe pipeline would cease on Wednesday morning.
In the future, the Bulgarian Energy Ministry stated that it had been informed that Bulgaria’s Russian gas deliveries would likewise cease on Wednesday.
Europe imports large amounts of Russian natural gas to heat homes, generate electricity, and fuel the industry. Imports have persisted despite the situation in Ukraine.
In reaction to the Russian payment demand, Poland’s gas provider announced it was considering legal action. On the other hand, Polish Climate Minister Anna Moskwa stated that Poland has been working for years to reduce its reliance on Russian energy sources.
A natural gas price dispute between Russia and Poland has resulted in Russia will Cut Gas Supply To Poland and Bulgaria. Both countries have refused to pay in rubles, prompting Russia to shut off its gas supplies.
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