Gazprom Cuts Gas Deliveries to Oersted, Shell

By Jaime Llinares Taboada

Gazprom PJSC said Tuesday that it will cut gas supplies to Denmark's Oersted AS and Shell PLC after they refused to make payments in Russian roubles.

Russia's state-owned gas giant said that deliveries will be suspended from June 1 until payments are made in roubles.

Gazprom said that the contract with Shell was for a maximum of 1.2 billion cubic meters per year.

"Shell has not agreed to new payment terms set out by Gazprom, including the creation of K accounts. We will work to continue supplying our customers in Europe through our diverse portfolio of gas supply," a spokesperson for Shell said. Shell didn't disclose what countries ultimately receive those volumes.

Oersted said in a separate statement that it is under no obligation to pay in roubles and that it will continue to pay in euros.

Mads Nipper, the chief executive of the Danish company, said that Oersted had been preparing for this scenario and expects to be able to continue supplying gas to its customers.

On Monday, Gazprom announced that it would cut deliveries to Dutch trader GasTerra as it also refused to make payments in roubles.

In 2021 the EU imported 155 billion cubic meters of gas from Russia, around 40% of its total gas consumption, according to the International Energy Agency.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

May 31, 2022 13:21 ET (17:21 GMT)

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