Russia to cut gas deliveries to Poland and Bulgaria

Russia to cut gas deliveries to Poland and Bulgaria

Warsaw - Moscow will cut off natural gas deliveries to Poland and Bulgaria officials said Tuesday. Putin demanded once sanctions were imposed to make payments in Russian rubles, a demand which the countries refused.

Russian state-owned energy giant Gazprom informed the two EU and NATO member nations that gas supplies will be suspended starting Wednesday

Putin’s announcement last month that “unfriendly foreign buyers” would have to transact with Gazprom in rubles instead of dollars and euros was met only by Hungary. Oher countries rejected the demand as an unacceptable, one-sided breach of contracts and a violation of sanctions.

The Yamal-Europe line carries gas from Russia to Poland and Germany, via Belarus. Poland has been receiving some 9 billion cubic meters annually, fulfilling some 45% of the country’s need.

Polish state gas company PGNiG said it was considering legal action over Moscow’s payment demand.

Halting deliveries to other countries as well could cause economic impact in Europe, driving natural gas prices up and possibly leading to rationing, but it would also deal a blow to Russia’s own economy.
-AP

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