On Wednesday, European Commission (EC) President Ursula von der Leyen slammed Russia over its decision to halt gas supplies to Poland and Bulgaria, calling it “yet another attempt to use gas as an instrument of blackmail.”
Describing the decision as “unjustified and unacceptable,” von der Leyen adopted a reassuring tone, noting the preparedness of the 27-member European Union (EU) for such a scenario. She revealed that the bloc had “put in place contingency plans for just such a scenario and we worked with them in coordination and solidarity,” adding that both Poland and Bulgaria are receiving gas from their EU neighbours.
Gazprom's announcement is another attempt by Russia to blackmail us with gas.
— Ursula von der Leyen (@vonderleyen) April 27, 2022
We are prepared for this scenario. We are mapping out our coordinated EU response.
Europeans can trust that we stand united and in solidarity with the Member States impacted.
The EC President also reiterated the agreement reached with the United States (US) to receive additional energy imports this year and in the coming years. In addition, she warned of an “immediate, united and coordinated” response to the Kremlin’s recent provocation.
Along the same lines, European Council President Charles Michel termed Moscow’s decision “another aggressive unilateral move,” adding that he is in touch with the Polish and Bulgarian Prime Ministers (PMs), Mateusz Morawiecki and Kiril Petkov.
Gazprom’s decision to cut gas supplies to some EU Member States is another aggressive unilateral move by Russia.
— Charles Michel (@eucopresident) April 27, 2022
In contact with @MorawieckiM and @KirilPetkov
We will remain united and support each other while phasing out Russian energy imports.
Meanwhile, Bulgarian PM Petkov discussed the Gazprom situation with Greek PM Kyriakos Mitsotakis; both leaders vowed to cooperate to achieve energy security and diversification. Furthermore, Petkov mentioned that he is confident that the construction of the Gas Interconnector Greece-Bulgaria (IGB) pipeline will be completed on time. The pipeline will connect Bulgaria to the Southern Caspian Corridor through Turkey, Georgia, and Azerbaijan.
On Wednesday, Russian state-owned gas company Gazprom released a statement saying: “Gazprom has completely suspended gas supplies to Bulgargaz [Bulgaria] and PGNiG [Poland] due to absence of payments in rubles,” adding, “Payments for gas supplied from April 1 must be made in rubles using the new payments details, about which the counterparties were informed in a timely manner.”
In fact, Kremlin spokesperson Dmitry Peskov had threatened to halt gas supplies just a day earlier.
📞 Discussed with @kmitsotakis the Gazprom situation. 🇧🇬 and 🇬🇷 will continue to work together for #energy security and #diversification - of strategic importance for both countries and the region.
— Kiril Petkov (@KirilPetkov) April 27, 2022
We both are confident for the successful completion of the #IGB on time.
Warsaw and Sofia have alleged a breach of contract, with Polish gas company PGNiG saying it “reserves the right to seek compensation and will use all available contractual and legal means to do so.”
In a similar vein, Bulgarian Minister of Energy Alexander Nikolov insisted that the country has already paid for Russian gas deliveries for April and accused Moscow of using natural gas as an “economic and political weapon” in the ongoing Ukraine war.
Gazprom Confirms that has Natural Gas Shipments have been cut to Poland and Bulgaria as of this morning due to both Countries refusing to pay in Rubles, though Shipments still continue to other European Countries such as Italy and German. pic.twitter.com/wPi870Ntc0
— OSINTdefender (@sentdefender) April 27, 2022
In response to the growing list of Western sanctions, Russian President Vladimir Putin issued a demand last month for “unfriendly countries” to pay for Russian oil and gas imports in rubles. He asked importing countries to open bank accounts at Gazprombank and make payments in euros or dollars, which would then be converted into rubles. However, Poland and Bulgaria refused to abide by Putin’s new payment scheme and refused to extend their gas deals with Russia.
⚡️ Poland, Bulgaria say Russia cutting gas supplies is breach of contract.
— The Kyiv Independent (@KyivIndependent) April 27, 2022
Poland’s energy company PGNiG and Bulgarian Prime Minister Kiril Petkov said the move violated established supply contracts, which stipulate gas sales in dollars.
Commenting on the situation, head of gas analytics at data intelligence firm ICIS Tom Marzec-Manser said, “This is a seismic warning shot by Russia. Poland has had an anti-Russia and anti-Gazprom stance for a number of years, which is not the case for Bulgaria, so to see Bulgaria also be cut off is also quite a development in its own right.”
Warsaw refused to extend its gas deal with Gazprom back in 2020, while Sofia’s gas contract with Moscow is due to expire at the end of this year. According to Forum Energii think tank, Poland and Bulgaria respectively rely on Russia for 50% and 75% of their gas imports.