The Netherlands – GasTerra, a Dutch gas trader, has refused to acknowledge Gazprom’s one-sided payment requirements.
These payment requirements are outlined in a decree issued by Russian President Vladimir Putin regarding the payment of Russian gas supplies. In response to GasTerra’s decision, Gazprom announced that supply would cease on May 31, 2022.
Russian President Vladimir Putin issued a decree on March 31 mandating that Russian gas be paid for in roubles from now on. This means that anyone who wants to buy gas will have to open accounts with Gazprombank in Moscow in both euros and roubles. Gazprom’s payment demands will not be met by GasTerra. This is due to the fact that doing so would put the EU’s sanctions in jeopardy, as well as the fact that the required payment route entails far too many financial and operational risks. Opening accounts in Moscow under Russian law and having those accounts controlled by the Russian regime is a huge risk for the Groningen company.
Effects on European demand
Due to Gazprom’s suspension of supply, approximately 2 billion m3 of contracted gas will not be delivered between now and October 1, 2022, the contract’s end date. GasTerra has foreseen this by purchasing gas from other suppliers.
The European gas market is complex and interconnected. However, it is impossible to predict how the loss of 2 billion m3 of Russian gas will affect the supply/demand situation in Europe, or whether the European market will be able to absorb this loss without serious consequences.
To no avail, GasTerra has repeatedly urged Gazprom to adhere to the contractually agreed payment structure and supply obligations.
