Russian gas producer Gazprom (MCX:GAZP) has cut off gas supplies to Denmark’s Orsted (OTC:DOGEF) and to Shell (LON:RDSa). It stated on Wednesday that it had lost its contract to deliver gas to Germany due to the companies’ refusal to pay in roubles.Reuters
Following their reluctance to pay for gas in Russian roubles. As required by Moscow in reaction to Western sanctions over the Russia-Ukraine crisis. Gazprom has already cut deliveries to Dutch gas trader GasTerra, as well as Bulgaria, Poland, and Finland.
However, German, Italian, and French corporations have stated that they will participate in Moscow’s payment arrangement in order to preserve supplies.
Shell Europe accounted for only small gas supply volumes that could be sourced from other parties. According to the Bundesnetzagentur, Germany’s network regulator, who said on Wednesday.
According to data from Danish system operator Energinet. The flow of natural gas to Denmark via Germany remained stable on Wednesday.
According to the Danish Energy Agency, there is no direct gas pipeline from Russia to Denmark. Danish buyers have the option of purchasing gas from sources other than Gazprom.
On Wednesday, gas supplies via Ukraine, a key Gazprom export route to Europe, remained at 41.2 million cubic meters, slightly lower than Tuesday’s volumes.
Potential for a ‘significant recession’
If Russian natural gas and oil supplies are cut off, Germany could enter a “significant recession,” according to a top banker in April. According to Reuters, Germany’s economic powerhouse is heavily reliant on Russian gas, which accounted for 55 percent of its gas imports in 2021 and 40 percent in the first quarter of 2022.
Outside of regular business hours, the German economy ministry did not respond to Insider’s request for comment. On Tuesday, a German government spokesperson told CNN that the country was “very closely monitoring the situation.”
“We have not accepted to new payment terms laid out by Gazprom,” Shell told Insider.
In addition, the energy behemoth has not established any separate accounts for the processing of ruble payments.
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