Poland says it will do without Russian gas

The Yamal – Europe gas pipeline in Poland

Photo by Getty Images

Caption to the photo,

Poland receives natural gas from the east through the Yamal-Europe pipeline

Russian energy giant Gazprom has confirmed that it has stopped exporting gas to Poland and Bulgaria due to the refusal of countries to pay for supplies in rubles.

In a statement issued Wednesday morning, the company said services would not be resumed until payments were made in Russian currency.

Last month, Russian President Vladimir Putin said that payments for Russian gas supplies to “unfriendly countries” were being translated into rubles.

Poland’s Deputy Foreign Minister said that Warsaw could do without Gazprom’s gas.

Marcin Pszydac told the BBC that Poland “made some decisions many years ago to prepare for this situation, and now there are options to receive gas from other partners, including the United States and the Persian Gulf countries.”

For his part, British Deputy Prime Minister Dominique Raab told Sky News that the decision to cut off gas supplies would have a “very detrimental effect on Russia”, adding that such steps could make the country an “economic outcast”.

“Breach of contract”

Polish state gas company PGNiG has confirmed that Gazprom has cut off gas supplies to the country.

In the first quarter of this year, PGNiG purchased 53% of its imported gas from Gazprom, but Warsaw says it may receive gas from other sources.

PGNiG emphasizes that “the suspension of natural gas supplies is a breach of contract, and therefore the company will take appropriate measures to resume natural gas supplies under this contract,” the Polish company said.

It is unclear whether gas supplies to Bulgaria have stopped after Sofia announced on Wednesday morning that it continues to receive gas.

Bulgaria, which imports 90% of its gas from Gazprom, has said it is looking for alternative sources of supply.

The country’s energy ministry stressed that Bulgaria has fulfilled its obligations under the current contract with Gazprom and made all necessary payments. Energy Minister Temenuzhka Petkova accused Gazprom of violating the contract and said Sofia would continue to adhere to the EU’s position and pay for gas supplies from Russia in euros.

Following the news, the Polish Ministry of Climate stated that there were no problems with energy supply in the country.

Climate Minister Anna Moskva said there was no need to take gas from reserves, and gas supplies to consumers would not be reduced.

Marcin Pszydach said his country was preparing for Russia to limit gas exports by diversifying its supplies.

“I am confident that we will be able to cope with this,” he told the BBC.

He added that the suspension showed that Moscow “is not a reliable partner in any business” and called on other European countries, such as Germany, to support a ban on Russian energy imports.

Poland planned to give up Russian gas at the end of 2022, when the contract with Gazprom expires.

PGNiG said that its gas storage is almost 80% full, and that the demand for gas is declining as summer approaches.

Poland also has alternative sources of supply, including a liquefied natural gas (LNG) terminal in Swinoujscie.

On May 1, the main gas pipeline connecting Lithuania and Poland (GIPL) will also open.

A new gas pipeline from Norway will start operating in October. By the end of the year, it should reach full capacity and be able to replace all Russian supplies.

Russia accounts for about 40% of natural gas imports to the EU. However, many countries have decided to abandon Russia’s energy resources in response to its invasion of Ukraine.

The United States has announced a total ban on imports of Russian oil, gas and coal.

Britain must give up Russian oil by the end of the year and gas as soon as possible. The EU is cutting gas imports by two-thirds.

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