Wednesday, April 27, 2022

Four European Gas Buyers Fold To Russian Demands, Pay For Gas In Rubles

One day after Russia halted natgas supplies to Poland and Bulgaria due to "Nonpayment in rubles", confirming that the country is willing to go ahead with its bluff and shut down supplies to "Unfriendly" nations and sending European nat gas prices soaring, Bloomberg reports citing a person close to Russian gas giant Gazprom, that already Europe's fake united front is cracking as four European gas buyers have already paid for supplies in rubles as Russia demanded even as further cutoffs if others refuse the Kremlin's requirement aren't likely until the second half of May, when the next payments are due.

As we reported yesterday, Russia halted gat supplies to Poland and Bulgaria on Wednesday after they refused Gazprom's proposed mechanism for ruble payments, which the gas giant says does not violate European Union sanctions.

Russia supplies gas via pipelines to 23 European countries.

"In the event of unauthorized withdrawal of Russian gas from transit volumes to third countries, supplies for transit will be reduced by this volume."

In response to the "Unexpected" supply halts, which infuriated EU president Ursula von der Leyen, who today tweeted that "Gazprom's announcement is another attempt by Russia to blackmail us with gas" adding that Europe is "Prepared for this scenario" although judging by the scramble by several energy companies to pay in rubles that is not really true....Gazprom's announcement is another attempt by Russia to blackmail us with gas.

European gas prices rose by 20% on Wednesday.

While we already know that at least a handful of European energy buyers folded to Russian demands, multiple European buyers have refused to pay in roubles, saying it contradicted contract terms and would be a way to bypass EU sanctions on the Russian central bank.
 

https://www.zerohedge.com/markets/four-european-gas-buyers-fold-russian-demands-pay-gas-rubles 

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