Denmark became the fifth country to be cut off from Russian natural gas. Russia has already cut off gas supplies to Poland, Bulgaria, Finland and the Netherlands, after the countries refused to comply with Russian demands to switch to payment in roubles.

Russian energy giant Gazprom announced on Wednesday that supplies to Shell Energy Europe Limited in Germany have also been halted for the same reason.

According to the Russian Energy Ministry, about two dozen European companies have so far opened ruble accounts.

Vladimir Putin's decree has been seen as an attempt to boost the Russian currency, which has been hit by sanctions, as more foreign exchange demand for roubles is likely to increase demand and push up its value.

“As of the end of the business day on May 31, Gazprom Export had not received payment for gas supplies in April from Orsted Salg & Service,” the Russian company explained in a statement.

It added that in 2021, Gazprom Export supplied the Danish company with 1.97 bcm of gas, which amounted to about two thirds of total gas consumption in Denmark.

“The contract between Gazprom Export and Shell Energy Europe Limited for the supply of gas to Germany provides for a volume of up to 1.2 bcm of gas per year,” Gazprom said.

Shell accounts for just 2.6% of the 95 bcm of natural gas Germany consumes each year.

“Shell continues to work on a phased withdrawal from Russian hydrocarbons,” the company told the BBC.

Shell has taken a hit of $5bn (£3.8bn) from offloading its Russian assets as part of its plans to withdraw sever ties with the country. It also confirmed it had quit its joint ventures with Gazprom.

The firm pledged in April to no longer buy oil from Russia, but said contracts signed before the invasion of Ukraine would be fulfilled.

Shell faced criticism for buying Russian crude oil at a cheap price shortly after the war began.
-RT/BBC