Virendra Pandit
New Delhi: After Russia cut off natural gas supplies to two NATO members—Poland and Bulgaria—four European buyers have already paid for supplies in rubles as President Vladimir Putin had demanded, the media reported on Thursday.
Russia supplies natural gas via pipelines to 23 European countries. The Kremlin warned on Wednesday gas will be cut off to other countries as well if they do not agree to the payment agreement.
Both Poland and Bulgaria are now receiving gas from their EU neighbors.
Next month, the Kremlin may cut off more gas supplies when payments are due.
Ten European companies getting Russian gas have already opened their accounts at Russia’s state-run Gazprombank, needed to meet Moscow’s payment demands, the reports said.
On Wednesday, Russia had stopped gas supplies to Poland and Bulgaria after they refused Gazprom’s proposed mechanism for rubles payments, which the gas giant said did not violate the European Union’s sanctions against Russia after its invasion of Ukraine on February 24.
After the EU’s sanctions, Moscow demanded payment for its gas supply in its own currency, the ruble, for shipments starting April 1. But the EU told member states that the mechanism the Kremlin proposed, which required opening euro and ruble accounts with Gazprombank, would violate the sanctions.
The EU also called Russia’s gas cut-off to Poland and Bulgaria a ‘blackmail’.
These gas cuts did not immediately put them into any dire trouble, as Russia’s supplies to both countries were expected to end later this year.
Gazprom said on Wednesday that the decision was taken because Poland and Bulgaria, both part of the European Union (EU), refused to pay in rubles.
In March, Russian President Putin had announced that his government will no longer accept payments in currencies other than the ruble in retaliation for the sanctions imposed by Western countries against Moscow over its offensive on Ukraine.
Gazprom’s move to cut off gas supply came hours after the Polish government announced a new set of sanctions against the company, Russian businesses, and oligarchs.
Polish Prime Minister Mateusz Morawiecki told Parliament on Wednesday that Poland’s support for Ukraine and the sanctions imposed on Moscow were the real reasons behind the gas cut.
Bulgarian Prime Minister Kiril Petkov called Gazprom’s act blackmail, adding his government will not succumb to it.
European Commission President Ursula von der Leyen also called Gazprom’s gas cuts in Poland and Bulgaria ‘blackmail’. “It comes as no surprise that the Kremlin uses fossil fuels to try to blackmail us… Our response will be immediate, united, and coordinated. Both Poland and Bulgaria are now receiving gas from their EU neighbors.”
She said the era of Russian fossil fuels in Europe will come to an end, and also warned EU importers that, unless a supply contract was denominated in rubles, giving in to Russia’s demand and making payment in its currency would contravene sanctions.