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Gazprom reportedly analyses effects of gas delivery stoppage

Shiva Singh by Shiva Singh
31 March 2022
in Belgium Business And Economy News
Saint,Petersburg,,Russia,2020.12.17,Gazprom,Gas,Company,Office

Belgium, (Brussels Morning Newspaper) Russian Gazprom energy company is analysing possible effects of stopping gas supplies to unfriendly countries, according to Russian daily Kommersant.

Unnamed sources noted that “Gazprom… is indeed working on an option of a complete stoppage of gas supplies to ‘unfriendly countries’ and is evaluating the consequences of such measures,” Reuters relayed on Thursday.

The Russian daily stressed that Gazprom did not want to discuss the issue and Reuters added that the company did not respond to its request for comment.

Russian President Vladimir Putin previously announced that unfriendly countries will be required to pay for Russian natural gas imports in roubles, which heightened concerns about soaring energy prices in Europe.

Putin has instructed Gazprom, the government and the Central Bank of Russia to prepare new payment schemes by the end of March, while Gazprom’s EU clients announced they would not accept the gas-for-roubles scheme.

Moscow stressed on Wednesday that the switch to payments in roubles would not be implemented today, stressing that “payments and delivery is a time-consuming process.”

Europe reportedly exempt

Also on Wednesday, the German government announced that it received Russian assurances that European clients would not have to pay in roubles, DW reports.

German Chancellor Olaf Scholz’s office noted that Putin told Scholz that Gazprom’s European clients could continue paying for natural gas in euro or US dollars.

The office pointed out that Putin informed Scholz in a telephone call that European clients would pay for deliveries through Gazprombank, which is not under EU sanctions, and that the money would then be transferred to Russia in roubles.

The office stressed in a statement that “Scholz did not agree to this procedure in the conversation, but asked for written information to better understand the procedure.”

The Kremlin noted in a statement that Putin assured Scholz that “the decision taken should not lead to worsening of contractual terms for European importer companies.”

Putin defended Russia’s plan to start charging for natural gas in roubles, stressing that “in violation of the norms of international law, the foreign exchange reserves of the Bank of Russia were frozen by the member states of the EU.”

The two leaders agreed that teams of experts from both sides should further discuss the matter, the Kremlin noted in the statement.

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