Dutch and Danish operators refuse to pay for Russian gas in rubles

Dutch gas operator Gasterra has decided not to comply with Gazprom’s requirements on payment for gas in rubles, the company’s website informs.

“GasTerra will not go along with Gazprom’s payment demands. This is because to do so would risk breaching sanctions imposed by the EU and also because there are too many financial and operational risks associated with the required payment route. In particular, opening accounts in Moscow under Russian law and their control by the Russian regime pose too great a risk for the Groningen company,” the company statement reads.

In response to GasTerra’s decision, Gazprom said that it would discontinue gas supply to the Netherlands from 31 May. “The cessation of supply by Gazprom means that, between now and 1 October 2022, the date on which the contract ends, approximately 2 billion m3 of contracted gas will not be delivered,” the company stated, adding that it is ready to compensate that with gas bought from other providers.

Earlier, leading Danish operator Ørsted also stated that it refuses to pay for Russian gas in rubles. The company noted that the company is under no legal obligation to do that. Ørsted does not rule out that Gazprom Export would cease gas supply in response to the company’s decision.

On 31 March, Russian President Vladimir Putin signed a decree obligating operators from “unfriendly” states to pay for Russian gas in rubles. EU leaders have repeatedly opposed this decision.