The largest company in the Russian Federation by revenue, Gazprom will cut supplies to the Netherlands partly owned state firm GasTerra on Tuesday after it refuses to pay in rubles, the company said.
With the Russian invasion over Ukraine, Moscow has asked clients to pay in rubles for gas, which is probably a way to sidestep Western financial sanctions against its central banks.
The Russian company has said that it will not supply two billion cubic metres of gas to the Netherlands from now till October, GasTerra said.
“GasTerra has repeatedly urged Gazprom to respect the contractually agreed payment structure and delivery obligations, unfortunately to no avail,” it said.
However, the Dutch government said it “understands” GasTerra’s decision not to comply with Gazprom’s “unilateral” demand.
“In response to the decision by GasTerra, Gazprom has announced that it will discontinue supply with effect from May 31, 2022,” GasTerra said on Monday.
