Russia-Ukraine war: Gazprom cuts gas supplies to Poland, Bulgaria

Poland and Bulgaria accuse Gazprom of breaching contracts after it cuts off gas, and demands payments in Russian roubles.

Russia’s Gazprom has suspended gas deliveries to Poland and Bulgaria, citing the two countries’ refusal to pay in Russian roubles, prompting accusations of “blackmail” and emergency talks at the European Union headquarters in Brussels.

In a statement on Wednesday, the Russian energy giant said it has “completely suspended gas supplies” to Poland’s PGNiG and Bulgaria’s Bulgargaz “due to the absence of payments in roubles”.

The cut-offs are the first since Russian President Vladimir Putin’s announcement last month that “unfriendly foreign buyers” would have to transact with Gazprom in roubles instead of United States dollars and euros. The demand was a response to international sanctions over its war in Ukraine.

But only Hungary has agreed to do so, with other EU countries rejecting the demand as rewriting contracts that called for payment in euros.

Gazprom said both Poland and Bulgaria had been told of Wednesday’s suspension in advance.

“Payments for gas supplied from April 1 must be made in roubles using the details of the new payment, about which the counterparties were informed in a timely manner,” it said.

The two countries, however, accused Gazprom of breach of contract, while the Polish gas company threatened to take legal action.