Russia cuts gas supply to Denmark

Russia cuts gas supply to Denmark
Gazprom- CC via Flickr

The Russian government decided on Wednesday to cut gas supplies to Denmark after the latter's refusal to pay for deliveries in rubles, reported Russia Today.

Russian energy giant Gazprom previously announced that natural gas supplies to Germany have also been halted due to the same reason.

The Russian state-run company said in a statement issued Tuesday that it had not received payment from the Danish multinational power company Orsted.

The statement added that Gazprom had provided Orsted in 2021 with 1.97 bcm of gas, which amounted to two-thirds of Denmark's gas consumption.

Lately, Russia orchestrated a new payment mechanism that requires gas buyers from countries that imposed sanctions on Moscow to open accounts in Gazprom in order to deposit funds in their currency of choice. Those deposit funds are later converted into rubles and transferred to the Russian energy giant.

Denmark became the fifth European state to be cut off from Russian gas supplies after Bulgaria, Poland, Finland, and the Netherlands, according to the Russian Energy Ministry.

About 24 European companies have yielded to the new Russian conditions and opened ruble accounts.



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