© Reuters. FILE PHOTO: The logo of Gazprom is seen on the facade of a business centre in Saint Petersburg, Russia, March 31, 2022. REUTERS/Reuters photographer/File Photo
(Reuters) -Russia’s Gazprom (MCX:GAZP) said on Tuesday it would cut off gas flows to Denmark’s Orsted and to Shell (LON:RDSa) Energy for its contract to supply gas to Germany, after both companies failed to make payments in roubles.
The cuts will be effective from June 1, Gazprom said.
Russia has already cut off gas supplies to Poland, Bulgaria, Finland and the Netherlands, which refused to make payments in line with a demand that requires rouble accounts to be set up in a Russian bank as part of the settlement scheme.
Orsted had said on Monday that Gazprom Export could stop supplying gas but said such a move would not immediately put Denmark’s gas supplies at risk.
Gazprom also said it had been told by Shell Energy Europe Limited that it would not pay in roubles for gas supplied to Germany. It added that the contract stipulated gas supplies of up to 1.2 billion cubic metres per year.
Gazprom said Shell and Orsted had failed to pay for gas deliveries by the end of the working day on May 31, and stop deliveries until they paid in line with Russian demands.
Gazprom to cut gas supplies to Denmark’s Orsted, Germany via Shell deal