Russia's Gazprom Stops Deliveries of Russian Gas to Germany via Yamal-Europe Pipeline

Source:

https://www.express.co.uk/news/world/1590106/germany-russian-gas-gazprom-putin-cuts-off-supply-ont

"Germany depends on Russian gas for about 40 percent of its needs, but has joined Western sanctions against Moscow over Ukraine, including by halting the Nord Stream 2 Baltic gas pipeline designed to double the flow of Russian gas direct to Germany.

The Russian gas supplier said it had terminated its participation in Gazprom Germania GMBH and all of its assets, including Gazprom Marketing & Trading Ltd.

However, it provided no further details or explanation.

Katja Yafimava, senior research fellow at the Oxford Institute for Energy Studies told Reuters:

“I think this means Gazprom is drawing a curtain on being an active participant in the European gas market.

Essentially it is going home because it no longer feels welcome.

“I think Gazprom understands it is going to face a hostile political and regulatory environment in Europe and therefore wants to consolidate and conduct all of its business in one place – St Petersburg, most likely with the political support of the Russian government.”

The move further complicates energy ties between Russia and Germany, a day after Russian President Vladimir Putin signed a decree to impose rouble pricing for gas on buyers from what Moscow considers unfriendly countries.

On Thursday, Putin warned “unfriendly” countries, including all EU members, that they would be cut off from Russian gas unless they opened an account in roubles to pay for deliveries.

Putin said during a televised government meeting:
“They must open rouble accounts in Russian banks.

“It is from these accounts that payments will be made
for gas delivered starting tomorrow, April 1.”

He continued: “If such payments are not made,
we will consider this a breach of obligations
on the part of our buyers with all
the ensuing consequences.”

Germany and France rejected Vladimir Putin's demand that foreign purchasers of Russian gas pay in roubles as an unacceptable breach of contract, adding that the manoeuvre amounted to “blackmail”.

Germany Economy Minister Robert Habeck said that Germany was prepared for all scenarios, including a stoppage of Russian gas flows to Europe.

He said: “It is important for us not to give a signal
that we will be blackmailed by Putin.”

French Finance Minister Bruno Le Maire said that both nations rejected Russia’s demand and were “preparing” for the possibility that Russia would halt deliveries.

While the United States has banned the import of Russian oil and gas, the European Union has retained deliveries from Moscow.

According to the decree, all payments would be handled by Russia's Gazprombank, a subsidiary of state energy giant Gazprom.

Buyers will transfer payments into a Gazprombank account in foreign currency, which the bank will then convert into roubles and transfer into the buyer's rouble account.

Western countries have piled crippling sanctions on Moscow since its invasion of Ukraine, including the freezing of its $300 billion of foreign currency reserves.

US State Department spokesperson Ned Price said that Putin's demand for payment in roubles is a sign of Moscow's economic and financial "desperation" caused by Western sanctions."