Russia will cut off the gas to Poland and Bulgaria on Wednesday in a major escalation in the standoff between Moscow and Europe over energy supplies and the war in Ukraine.
Moscow appears to be making good on a threat to halt gas supplies to countries that refuse President Vladimir Putin’s new demand to pay for the crucial fuel in rubles. Europe has said that doing so would breach sanctions and strengthen Russia’s hand.
As payment deadlines start falling due, Poland, followed swiftly by Bulgaria, said on Tuesday that Gazprom PJSC had informed them the gas will stop flowing on Wednesday. In the coming weeks, more companies will have to decide whether to pay in rubles — or risk losing supplies.
European gas prices surged as much as 17% as traders calculated the risk of other European countries being hit next. The focus now turns to other European capitals, particularly Germany, which is heavily dependent on Russian gas. There was no immediate reaction from Berlin.
“Any buyer rejecting the new payment procedure out of hand is running a very real risk of supplies being cut,” said Katja Yafimava, senior research fellow at the Oxford Institute for Energy Studies.
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