Russia's Gazprom cuts gas to Germany, Denmark over ruble fight
European nations continue to refuse Putin's ruble stipulation
Oil jumps after EU's partial ban on Russian crude
Power the Future executive director Daniel Turner weighs in as gas prices hit record high on 'Fox Business Tonight.'
Russian energy giant Gazprom on Wednesday said it had completely cut off its gas supplies to two reigning energy companies in Denmark and Germany after they refused to pay in rubles.
In two separate statements posted to Gazprom's Twitter account the energy company said it had suspended service to Germany’s Shell Energy Europe Limited and Denmark's Orsted Salg & Service after threatening to do so one day prior.
A man fishes on the ice of Finnish Gulf next to the business tower Lakhta Centre, the headquarters of Russian gas monopoly Gazprom covered by clouds in St. Petersburg, Russia, on Jan. 13, 2022. (AP Photo/Dmitri Lovetsky / AP Newsroom)
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The Russian energy giant has cut off several European nations in retaliation for unpaid energy bills for services provided since April.
Nations across the European Union like Poland, Bulgaria, Finland and the Netherlands have refused to abide by Moscow’s demand that all gas supplies be paid in the Russian currency.
In late March, Russian President Vladimir Putin announced the energy payment stipulation in an attempt to reverse his flagging economy amid stiff international sanctions.
Gazprom’s site, along with thousands of other Russian sites, has been blocked. But according to a Russian media outlet, Gazprom’s energy supplies made up roughly two-thirds of Denmark’s total gas consumption.
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Following the imposition of sanctions on Moscow, oil traders, refiners and the bankers who finance the trade in crude, balked at taking part in oil purchases from Russia, one of the world’s largest producers. (iStock / iStock)
The cuts to German gas supplies were significantly less impactful, as Gazprom provided less than two percent of the country’s annual natural gas needs.
Nations have been bracing for an end to their Russian-supplied gas following Moscow’s March mandate and Dutch energy company GasTerra said this week it expected its supplies to be cut off.
The company said it had been bracing for the change by "purchasing gas elsewhere."
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Several European nations vowed earlier this year to cut their gas reliance on Russia – which in 2021 supplied roughly 40 percent of all European gas needs.
The European Union on Tuesday said it would block 90 percent of Russia's oil exports by the end of the year and vowed to address the additional 10 percent as quickly as possible.