Russia cuts off natural gas supply to Denmark, company says

Jun 1, 2022, 12:52 AM | Updated: 7:43 am

COPENHAGEN, Denmark (AP) — Denmark’s largest energy company said Russia cut off its gas supply Wednesday because it refused to pay in rubles, the latest escalation over European energy amid the war in Ukraine.

Russia previously halted natural gas supplies to Finland, Poland and Bulgaria for refusing a demand to pay in rubles. And on Tuesday, the tap was turned off to the Netherlands.

Danish energy company Ørsted said it still expected to be able to serve its customers.

“We stand firm in our refusal to pay in rubles, and we’ve been preparing for this scenario,” Ørsted CEO Mads Nipper said. “The situation underpins the need of the EU becoming independent of Russian gas by accelerating the build-out of renewable energy.”

In response to Western sanctions imposed against Russia for its invasion of Ukraine, Russian President Vladimir Putin signed a decree saying foreign buyers needed to pay in rubles for Russian gas as of April 1.

Moscow offered customers receiving its natural gas to establish an account in dollars or euros at Russia’s third-largest bank, Gazprombank, then a second account in rubles. The importer would pay the gas bill in euros or dollars as specified in contracts and direct the bank to exchange the money for rubles.

“This is totally not acceptable,” Danish Prime Minister Mette Frederiksen said. “This is a kind of blackmailing from Putin. We continue to support Ukraine, and we distance ourselves from the crimes that Putin and Russia commit.”

Russian state gas giant Gazprom confirmed Wednesday that it stopped gas supplies to Shell Energy Europe and Denmark’s Ørsted after the two companies refused to abide by the ruble-payment mechanism.

Gazprom said it hadn’t received payments from either company for gas supplied in April and therefore was halting deliveries.

The Danish Energy Agency said that in the first 18 weeks of 2022, Russian gas amounted to approximately 25% of EU gas consumption. The agency said that Denmark losing its supply would not have immediate consequences

“We still have gas in Denmark, and consumers can still have gas delivered,” Kristoffer Böttzauw, head of the Danish Energy Agency. said in a statement Monday. “But we have plans ready if the situation worsens.”

Since there is no pipeline going directly from Russia to Denmark, Russia will not be able to directly cut off gas supplies to Denmark, which still will be able to get it, Ørsted said. Russia’s move means that Denmark must purchase more gas on the European gas market, the company added.

Denmark has been a net exporter of natural gas for many years, but because its Tyra field in the North Sea is being renovated, the country currently imports about 75% of its gas consumption via Germany. The Tyra field is expected to reopen in mid-2023.

In Denmark, some 380,000 households use natural gas for heating via gas boilers, the agency said.

On Tuesday, the leaders of the European Union agreed to cut around 90% of all Russian oil imports over the next six months. The 27-nation bloc has relied on Russia for 25% of its crude and 40% of its natural gas.

___

Follow AP’s coverage of the Ukraine war at https://apnews.com/hub/russia-ukraine

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
6 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
14 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
14 days ago
Tom Brundy points to a newly built irrigation canal on one of the fields at his farm Tuesday, Feb. ...
Associated Press

Southwest farmers reluctant to idle farmland to save water

There is a growing sense that fallowing will have to be part of the solution to the increasingly desperate drought in the West.
21 days ago
A young bison calf stands in a pond with its herd at Bull Hollow, Okla., on Sept. 27, 2022. The cal...
Associated Press

US aims to restore bison herds to Native American lands after near extinction

U.S. officials will work to restore more large bison herds to Native American lands under a Friday order from Interior Secretary Deb Haaland.
21 days ago
Children play in a dried riverbed in Flassans-sur-Issole, southern France, Wednesday, March 1, 2023...
Associated Press

Italy, France confront 2nd year of western Europe drought

ROME (AP) — Bracing for Italy’s second consecutive year of drought for the first time in decades, Premier Giorgia Meloni huddled with ministers Wednesday to start mapping out an action plan Wednesday, joining France and other nations in western Europe grappling with scant winter rain and snow. Meloni and her ministers decided to appoint an […]
23 days ago

Sponsored Articles

(Photo: OCD & Anxiety Treatment Center)...

Here’s what you need to know about OCD and where to find help

It's fair to say that most people know what obsessive-compulsive spectrum disorders generally are, but there's a lot more information than meets the eye about a mental health diagnosis that affects about one in every 100 adults in the United States.
(Desert Institute for Spine Care in Arizona Photo)...
Desert Institute for Spine Care in Arizona

5 common causes for chronic neck pain

Neck pain can debilitate one’s daily routine, yet 80% of people experience it in their lives and 20%-50% deal with it annually.
...
Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
Russia cuts off natural gas supply to Denmark, company says