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Dutch state energy company GasTerra failed to make a required payment in rubles to Russia for their gas supplies, so Russia cut off the Netherlands. The Netherlands has become the fourth country to stop receiving Russian natural gas, following its decision not to pay for deliveries in rubles.
Russia’s energy giant Gazprom announced on Tuesday that it had “completely stopped gas supplies” to the Dutch state energy wholesaler GasTerra. “As of the end of the business day on May 30, Gazprom Export had not received payment for gas supplies in April from GasTerra B.V.,” the Russian company explained in a statement.
According to a report by RT, GasTerra has already made arrangements to make up for the “shortfall” in natural gas. “The cessation of supply by Gazprom means that until October 1, 2022, the date on which the contract ends, approximately 2 bcm of contracted gas will not be supplied. GasTerra has anticipated this by purchasing gas elsewhere,” the Dutch company outlined in a statement.
In late April, Gazprom suspended gas exports to Bulgaria and Poland, and in May, Finland was cut off. Denmark also faces a supply freeze after refusing Russia’s ruble payment demand. Russia’s assistance in paying in rubles has come about to ward off sanctions placed on the country by the West.
Earlier this month Germany and Italy reportedly allowed national companies to open ruble accounts with Russia’s Gazprombank to comply with the new natural gas payment scheme and avoid a supply cut-off. In total, two dozen European companies have so far opened ruble accounts, according to the Russian Energy Ministry.
It looks like Russia is going to continue to balk at Western sanctions and make plans to get around them. Moscow’s new payment idea requires gas buyers from “unfriendly” countries that have placed sanctions on Russia to open accounts in Gazprombank. They can then deposit funds in their currency of choice, which the bank converts to rubles and transfers to the supplier.
This is going on while economies in the West are on the verge of crumbling due to crippling inflation and devastating food supply chain issues.
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