Russia cuts gas to Denmark's Ørsted and Shell for shipments to Germany

Russia stops this Wednesday, June 1, from supplying natural gas to Ørsted, the main energy group in Denmark, and to the British-Dutch Shell for shipments to Germany for refusing to pay in rubles, the Russian energy giant announced on Tuesday.

NewsEditor
NewsEditor
31 May 2022 Tuesday 10:12
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Russia cuts gas to Denmark's Ørsted and Shell for shipments to Germany

Russia stops this Wednesday, June 1, from supplying natural gas to Ørsted, the main energy group in Denmark, and to the British-Dutch Shell for shipments to Germany for refusing to pay in rubles, the Russian energy giant announced on Tuesday. Gazprom.

Its dedicated export division, Gazprom Export, announced that both companies had not paid their April invoices in rubles by the May 31 deadline for doing so.

According to the Russian company, the British-Dutch Shell Energy Company, under contract to Germany, and the Danish company Ørsted had previously notified that "they did not intend to make payments under the contract for the supply of gas in rubles", as required by the Kremlin to counter Western sanctions. As a consequence, gas supplies will be suspended until the time of payment.

Gazprom has cut gas supplies in recent weeks to several countries for refusing to pay in rubles, including Poland, Finland, Bulgaria and the Netherlands.

Gazprom indicated that the maximum annual volume of supplies to Germany under contract with Shell is 1.2 billion cubic meters. According to Bloomberg, this company has long-term contracts with Gazprom until 2031.

The volume of shipments to the Danish company was not disclosed. Its contract with Gazprom ends in 2030. Last Monday, the Danish Ministry of Climate and Energy assured that the Scandinavian country has gas stored to cover the demand of its customers for the next five months.

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