Denmark faces Russian gas supply cut

30 May, 2022 14:01 / Updated 3 years ago
The nation’s energy major has refused to pay in rubles, Bloomberg reports

Denmark could be the next country to be cut off from Russian natural gas after its biggest utility defied Moscow’s ruble payment demand. According to a Bloomberg report, Orsted said on Monday that it is continuing to reject demands from the Russian supplier to pay for gas supplies in Russian currency.

“We have no legal obligation under the contract to do so, and we have repeatedly informed Gazprom Export that we will not do so,” the company reportedly said, adding: “There is a risk that Gazprom Export will stop supplying gas to Orsted.”

The company’s payment deadline is Tuesday, and Orsted said it will continue to pay in euro, noting that it hasn’t opened a ruble account.

Russia’s new payment scheme requires gas buyers from “unfriendly” countries that have placed sanctions on Russia to open accounts in Russia’s Gazprombank. They can then deposit funds in their currency of choice, which the bank converts to rubles and transfers to Gazprom.

The Russian energy giant has recently suspended gas exports to Bulgaria, Poland, and Finland after they refused to comply.

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