Russia widens Europe gas cuts as Gazprom halts Dutch trader’s supply -Breaking
[ad_1]
© Reuters. FILEPHOTO: This illustration, taken February 8, 2022 shows a 3D printed natural-gas pipeline placed in front of the Gazprom logo. REUTERS/Dado Ruvic/Illustration/File Photo(Reuters) – Russia has increased its gas cuts towards Europe with Gazprom (MCX) switching off GasTerra, the top Dutch trader. This escalates the economic struggle between Moscow and Brussels.
This move follows a Danish declaration of a possible end to Russia’s gas supplies and an EU toughest yet measure against Russia in its invasion of Ukraine. It is an agreement to stop seaborne oil imports from Russia.
GasTerra (which buys, trades, and transports gas for the Dutch government) said that it has contracted with another company to obtain the 2 billion cubic metres of gas it was expecting from Gazprom by October.
Pieter ten Bruggencate, spokesperson for Economy Affairs Ministry said that “this isn’t yet seen as a danger to supplies.”
Orsted, a Danish company (OTC:), warned Monday that Gazprom Export might also stop its supply. However it said this would not put Denmark’s gas supplies in danger.
Moscow has already stopped supply to Finland, Poland and Bulgaria. It did so because they refused to pay Russian rubles. The demand was made as a response to Western sanctions, which have isolated Russia, including the cutting off of SWIFT, an international banking messaging system.
Gas supply reductions have pushed already high prices up, causing inflation to explode. This has prompted European companies and governments to seek alternative supplies and infrastructure, such as floating storage units and regasification (FSRUs), to manage it.
On Monday European Union leaders agreed in principle to cut the EU’s Russian oil imports by 90% by year-end, stepping up pressure on Russia over its invasion of Ukraine, which Moscow refers to a “special military operation”.
[ad_2]
