The move came as Denmark’s largest power company and Shell Energy in Germany refused to pay for supplies in rubles
Denmark has become the fifth country to be cut off from Russian natural gas following the refusal of its biggest power wholesaler, Orsted, to pay for deliveries in rubles. Supplies to Shell Energy Europe Limited in Germany have also been halted for the same reason, Russian energy giant Gazprom announced on Wednesday.
“As of the end of the business day on May 31, Gazprom Export had not received payment for gas supplies in April from Orsted Salg & Service,” the Russian company explained in a statement.
It added that in 2021, Gazprom Export supplied the Danish company with 1.97 bcm of gas, which amounted to about two thirds of total gas consumption in Denmark.
“The contract between Gazprom Export and Shell Energy Europe Limited for the supply of gas to Germany provides for a volume of up to 1.2 bcm of gas per year,” Gazprom said.
Shell accounts for just 2.6% of the 95 bcm of natural gas Germany consumes each year.
“Shell continues to work on a phased withdrawal from Russian hydrocarbons,” the company told the BBC.
Russia cuts off gas to NetherlandsREAD MORE: Russia cuts off gas to Netherlands
Most of Germany’s larger gas buyers, including Uniper and RWE, have agreed to the Kremlin’s ruble payment scheme.
Russia’s new payment mechanism requires gas buyers from “unfriendly” countries that have placed sanctions on Moscow 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 the Saint Petersburg energy giant.
The Russian energy giant recently suspended gas exports to Bulgaria, Poland, Finland and the Netherlands after they refused to comply. According to the Russian Energy Ministry, about two dozen European companies have so far opened ruble accounts.!
Denmark's largest power company and Shell Energy in Germany both refused to pay for supplies in rubles, prompting the action.
Denmark has become the sixth country to be shut off from Russian natural gas due to Orsted, the country's largest power wholesaler, refusing to pay in rubles for deliveries. Russian energy company Gazprom confirmed on Wednesday that supplies to Shell Energy Europe Limited in Germany have been terminated for the same reason.
"As of the end of the business day on May 31, Gazprom Export had not received payment from Orsted Salg & Service for gas supplies delivered in April," the Russian firm said in a statement.
Gazprom Export supplied the Danish company with 1.97 billion cubic meters of gas in 2021, according to the statement.
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