Russia cuts off natural gas supply to Denmark, company says

May 31, 2022, 12:52 PM | Updated: Jun 1, 2022, 7:35 am
FILE - Construction work on a 200 meter long pier being built where the gas pipeline is due to come...

FILE - Construction work on a 200 meter long pier being built where the gas pipeline is due to come ashore at Houstrup Strand, in West Jutland, Denmark, Tuesday Feb. 23, 2021. Denmark’s largest energy company said Russia cut off its gas supply Wednesday, June 1, 2022 because it refused to pay in rubles, the latest escalation over European energy amid the war in Ukraine. (John Randeris /Ritzau Scanpix via AP, File)

(John Randeris /Ritzau Scanpix via AP, File)

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

Evelyn Knapp, a supporter of former President Donald, waves to passersby outside of Trump's Mar-a-L...
Associated Press

Trump legal woes force another moment of choosing for GOP

From the moment he rode down the Trump Tower escalator to announce his first presidential campaign, a searing question has hung over the Republican Party: Is this the moment to break from Donald Trump?
24 hours ago
FILE - The Silicon Valley Bank logo is seen at an open branch in Pasadena, Calif., on March 13, 202...
Associated Press

Army of lobbyists helped water down banking regulations

It seemed like a good idea at the time: Red-state Democrats facing grim reelection prospects would join forces with Republicans to slash bank regulations — demonstrating a willingness to work with President Donald Trump while bucking many in their party.
24 hours ago
FILE - This Sept. 2015, photo provided by NOAA Fisheries shows an aerial view of adult female South...
Associated Press

Researchers: Inbreeding a big problem for endangered orcas

People have taken many steps in recent decades to help the Pacific Northwest's endangered killer whales, which have long suffered from starvation, pollution and the legacy of having many of their number captured for display in marine parks.
2 days ago
FILE - Hiring signs are displayed at a grocery store in Arlington Heights, Ill., Jan. 13, 2023. Emp...
Associated Press

Pay transparency is spreading. Here’s what you need to know

U.S. employers are increasingly posting salary ranges for job openings, even in states where it’s not required by law, according to analysts with several major job search websites.
2 days ago
Meadowdale High School 9th grade students Juanangel Avila, right, and Legacy Marshall, left, work t...
David Klepper and Manuel Valdes, Associated Press

Seattle high school teacher advocates for better digital literacy in schools

Shawn Lee, a high school social studies teacher in Seattle, wants to see lessons on internet akin to a kind of 21st century driver's education, an essential for modern life.
2 days ago
South Carolina Senators hear from the parents of people who died from fentanyl overdose on Jan. 19,...
Associated Press

With overdoses up, states look at harsher fentanyl penalties

State lawmakers nationwide are responding to the deadliest overdose crisis in U.S. history by pushing harsher penalties for possessing fentanyl and other powerful lab-made opioids that are connected to about 70,000 deaths a year.
2 days ago

Sponsored Articles

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!
safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Russia cuts off natural gas supply to Denmark, company says