EU "Russian gas cutoff threats ineffective... Gas supply to Poland and Bulgaria"

"Securing Alternative Supply Volumes" Emphasized
Poland to Supply Gas from Neighboring Bulgaria

[Image source=EPA Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The European Union (EU) held an emergency meeting and strongly condemned Russia for cutting off natural gas supplies to Poland and Bulgaria. The EU emphasized that Russia's threat to cut gas supplies would not work, as alternative supply volumes have already been secured.

On the 27th (local time), Ursula von der Leyen, President of the EU Commission, said in a statement, "Gazprom's unilateral announcement to cut Europe's gas supply is an attempt by Russia to use gas as a means of coercion," adding, "This is unfair and unacceptable, and it shows once again that Russia cannot be trusted as a gas supplier."

She continued, "We are prepared for such a scenario," emphasizing, "We are in close contact with all member states. We have been working to secure alternative supply volumes and to ensure the highest storage levels across the EU." Regarding Poland and Bulgaria, which were unilaterally notified of gas supply cuts by Russia, she explained, "They are receiving natural gas supplies from neighboring EU countries."

Earlier, Gazprom announced in a statement that it had completely cut gas supplies to Poland's PGNiG and Bulgaria's Bulgargaz for refusing to pay in rubles. Following this announcement, the Dutch TTF gas futures price, a key indicator of European natural gas, soared to 115 euros per megawatt-hour (MWh) during the session, then settled at 107.43 euros, up 4.6% from the previous close, after the EU announced the securing of supply volumes.

However, concerns are growing that controversy within EU countries will intensify as some nations have already announced acceptance of Russia's ruble payment measures, breaking the unified front. Bloomberg News, citing sources, reported that Italy's largest energy company, Eni, is considering opening a special ruble account at Gazprombank as requested by Russia. Bloomberg also reported that at least 10 companies in Europe have already opened accounts at Gazprombank, and four companies have even made payments in rubles.