Russian Gazprom ceases gas supply to Bulgaria and Poland

On April 27th 2022, Russian Gazprom discontinued its gas supplies to Polish PGNiG and Bulgarian Bulgargaz as these did not pay the Russian gas company in RUB. These suspensions are expected to stand until the Polish and Bulgarian company make the payments owed by them according to the procedure outlined in the relevant Russian presidential Decree. Following this event, gas prices in Europe gained 21% exceeding 1,370$ per 1K cubic meters at a certain point. This move of the RF implements the policy that RF President Vladimir Putin set out in the Decree in the earlier month. According to the Decree, unfriendly countries will be obliged to pay for Russian gas in RUB, and those failing to do so will get cut off. According to Moscow, it will not except payments under contracts with these countries in currencies other than RUB (hence, USD and EUR will not be accepted). This move is the first time the RF has enforced its policy as per the Decree and additional similar moves towards countries that will fail to comply with these requirements of the RF are expected to be taken. More information on this measure implemented by the RF on April 27th 2022 can be found here (in Russian).