July 5, 2022

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Gazprom has stopped supplying gas to the Netherlands due to a dispute over payment

Gazprom has stopped supplying gas to the Netherlands due to a dispute over payment

Russia’s Gazprom has stopped supplying gas to the Netherlands after today. This was reported by gas trader Gastera, which is owned by Shell, Esau Nederland and the Dutch state.

Gasterra does not want to respond to Gazprom’s payment demands. This is the result of a decree drafted by Russian President Putin on the payment in rubles. As a result, the Dutch company will not receive 2.0 billion cubic meters of gas from May 31 (tomorrow) until September 30, 2022. The company says it expected this by purchasing gas elsewhere.

Gasterra gives two reasons for not complying with payment requirements. By paying in rubles, the company will violate EU sanctions against Russia. In addition, she must then open bank accounts in Moscow. They are subject to Russian law, says Gastera, which is too risky.

No consequences for families

Minister Cetin (Climate and Energy) said he understood Gastera’s decision not to comply with Gazprom’s payment requirements. According to Jetten, this has no consequences for Dutch families.

Jetten also does not expect any consequences for the business. He added, “The Cabinet will continue to closely monitor the situation in the coming period.”

Gas reserves mobilization

A spokesman for Gastera says filling of gas reserves is continuing “in principle, according to plan”. Gastera does not want to say how big the annual volume is and what part will be lost when Gazprom stops supplying gas. The intent is that the missing portion, 2.0 billion cubic metres, will be fully compensated for by purchasing elsewhere.

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The contract with Gazprom expires on October 1, and that won’t change anything. The spokesperson notes that the company already has a plan to terminate activities and in this context the contract will not be extended.