Russia will halt gas flows to Poland, company says | Oil and Gas News

Poland’s major gasoline provider PGNiG mentioned it has been knowledgeable that every one flows will cease from Wednesday.

By Bloomberg

Russia will halt gasoline flows to Poland on Wednesday in a significant escalation within the standoff between Moscow and Europe over vitality provides and the conflict in Ukraine.

Moscow seems to be making good on a menace to chop off gasoline provides to nations that refuse Vladimir Putin’s new demand to pay in rubles. Europe has mentioned that doing so would breach sanctions and strengthen Russia’s hand unacceptably. Poland has been notably vociferous in its criticism of Russia over the conflict.

Poland’s major gasoline provider PGNiG mentioned it has been knowledgeable that every one flows will cease from Wednesday. Minutes earlier, Russian gasoline large Gazprom issued a warning that Poland should pay up for its gasoline provides on Tuesday  — within the Russian forex.

“I can affirm we’ve acquired such threats from Gazprom that are linked amongst different issues to the technique of cost,” Prime Minister Mateusz Morawiecki informed reporters in Berlin. “Poland is sticking to the preparations and perhaps Russia will attempt to punish Poland” by slicing deliveries.

Share of Natural Gas Imports Coming From Russia, 2020

European gasoline costs surged as a lot as 17% as merchants calculated the danger of different European nations being hit subsequent. The specter of cutoffs has been looming for weeks, however there was a sign final week that the European Union was suggesting a possible approach out of the standoff.

Late April and Might is when the funds for April gasoline provides fall due — the primary batch for which the brand new phrases apply —  and European officers and executives are in lots of circumstances nonetheless attempting to determine how greatest to reply. Europe is vastly depending on Russian gasoline, and has thus far largely shielded vitality from sanctions.

“The potential reduce might set a precedent for added curtailments following Russia’s request for cost in rubles,” Patricio Alvarez, an analyst at Bloomberg Intelligence mentioned.

Gazprom had no rapid remark.

Poland has been getting ready for all times with out Russian gasoline, and the federal government mentioned on Tuesday it has sufficient gas in storage. Warsaw has been calling for harder sanctions on Russia however has run into opposition from different EU nations.

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