Energy company Orsted warned today that Russia’s Gazprom could cut off gas supplies to Denmark after refusing to pay in rubles, stressing that such a move would not have a direct impact on Denmark’s gas supply.
Moscow’s demand for the payment of gas in rubles has revealed cracks in the European Union’s unified response to the war in Ukraine, as some member states refused to agree and others sought ways to comply.
“Gazprom Export continues to demand that Orsted pay for gas in rubles,” the Danish energy company said in a statement. “We have no legal obligation in our contract to do so and we have repeatedly informed Gazprom Export that we will not do so,” he added.
“There is a possibility that Gazprom Export will stop delivering gas to Orsted. In Orsted’s view, this would be a violation of the terms of the contract,” he said.
There is no gas pipeline connecting Russia directly to Denmark, which means that Moscow will not be able to cut off supplies directly to the Nordic country.
Orsted emphasizes that in the event that Russia cuts off gas supplies to Denmark, there will be no direct impact on the country’s supply. He argues that there is an alternative plan to address any shortcomings. “We have prepared for this scenario in order to minimize the risk for Orsted’s customers, which are mainly large companies in Denmark and Sweden,” he said.
It is unclear whether gas supplies from Russia will be suspended after the Danish Orsted deadline of May 31 expires.
Russian energy giant Gazprom did not immediately respond to a request for comment from Reuters.
Source: Capital
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