Russia may halt gas supplies to the Netherlands

Russian energy major Gazprom Export announced on Monday that it will suspend gas supplies to Dutch trader GasTerra from May 31 due to non-payment for deliveries in April and its refusal to pay in rubles.

“As of the end of the business day on May 30 (the payment deadline stipulated by the contract), Gazprom Export had not received payment from GasTerra for gas supplies in April,” the Russian company said in a statement. “In this regard, Gazprom Export notified GasTerra of the suspension of gas supplies from May 31, 2022 until payment is made in accordance with the procedure established by the aforementioned.”

The Dutch company had earlier notified Gazprom Export that it does not intend to make payments for gas supplies in rubles, arguing that it would breach Western sanctions.

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

Gazprom has recently suspended gas exports to Bulgaria, Poland, and Finland after they refused to comply. Denmark also faces a supply cut after refusing Russia’s ruble payment demand.

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