Wednesday , 29 May 2024
Home Global Economy Netherlands, Denmark after ruble boycott: Substitute for Russian gas possible
Global Economy

Netherlands, Denmark after ruble boycott: Substitute for Russian gas possible

Poland, Bulgaria and Finland have not received any gas from Russia since the end of April and mid-May respectively. They didn't want to pay in rubles. The Russian demand for payments in the local currency is a reaction to the European sanctions as a result of the Ukraine war. The next candidates: The Netherlands and Denmark.

NETHERLANDS

No more Russian gas for the Netherlands because they don't want to pay in rubles as requested – this will make it more difficult to fill up the Dutch gas reserves for next winter, according to Rob Jetten, Minister responsible for climate and energy. That could cause unrest on the international gas market. Nevertheless, he hopes that the gas storage tanks will be sufficiently filled in time. LPG from other countries should fill the gap – more information will be provided soon.

Dutch state-owned gas trader GasTerra has announced that it is refusing to comply with Gazprom's demand to pay in rubles. The Russians wanted to deliver 2 billion cubic meters of gas over the next four months, which was subsequently cancelled.

According to GasTerra, it foresaw the delivery stop and has already obtained the missing amount of gas from other sources.

In 2021, Russia exported 6.67 billion cubic meters of natural gas to the Netherlands. This corresponds to around 16 percent of consumption there.

Minister Jetten supports the rejection of GasTerra.

Rob Jetten, Minister for Climate and Energy: "For some time we have seen that energy prices are high across the world market. The war in Ukraine is not making it any easier. But we no longer want to be dependent on Russian gas and Putin's war chest stock up. So that's fine."

The Danish energy group Ørsted also expects that the Russian Gazprom could also stop its gas deliveries due to the lack of ruble payments. According to the announcement, payment will be made in euros on May 31.

At the same time, however, Ørsted notes that Russia doesn't really have the option to cut off Denmark's gas as there is no direct supply between the two countries. So Denmark can buy gas on the European market instead.

According to Danish Energy and Utilities Minister Dan Jørgensen, there should not be major consequences for Denmark if Ørsted continues to refuse to meet Russia's demands.

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