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Evening Standard
Evening Standard
World
David Bond,Nicholas Cecil and Daniel Keane

Gas prices surge as Russia says it is cutting supply to Poland and Bulgaria

A worker on duty at a gas compressor station of the Yamal-Europe pipeline

(Picture: AP)

European Commission President Ursula von der Leyen on Wednesday condemned Russia’s decision to cut gas supplies to Poland and Bulgaria as “blackmail”.

Russian energy giant Gazprom said it was halting supplies to the two eastern European countries after they refused to pay for the shipments in roubles.

Polish gas company PGNiG confirmed on Wednesday morning that Gazprom has already turned off the taps, adding that company clients are still getting the fuel in line with their needs. It was unclear whether supplies to Bulgaria had been stopped.

European gas prices rose by 20 per cent on Wednesday morning while the Euro fell to a five-year low against the dollar as markets reacted to the news.

“Gazprom’s announcement is another attempt by Russia to blackmail us with gas,” Ms von der Leyen tweeted.

“We are prepared for this scenario. We are mapping out our coordinated EU response. Europeans can trust that we stand united and in solidarity with the Member States impacted.”

Deputy Prime Minister Dominic Raab said the decision would add to Russia’s status as an economic and political pariah.

“We have been warning about this for a while but we will stand shoulder to shoulder with our Polish friends and allies,” Raab told Sky News. “It (halting gas supply) will have a ... very damaging effect on Russia as well because it is becoming further and further, more and more, not just a political pariah, but an economic pariah.”

EU countries currently import 40 per cent of their gas from Russia but Brussels has announced plans to cut that by two thirds within a year. The US has declared a complete ban on Russian oil, gas and coal imports while Britain has said it intends to phase out Russian oil by the end of the year, with gas to follow as soon as possible.

Gazprom’s move to cut supplies to the two NATO member countries is seen as retaliation for the sweeping sanctions imposed on individuals and companies associated with the Putin regime aimed at destabilising Russia’s economy following the invasion of Ukraine.

Fatih Birol, the executive director of the International Energy Agency, said Gazprom’s move “makes it clearer than ever that Europe needs to move quickly to reduce its reliance on Russian energy”. He added on Twitter: “The IEA strongly supports Poland & Bulgaria as they respond to this latest weaponisation of energy supplies.”

Poland has insisted it is well-prepared after working for years to reduce its reliance on Russian energy. In Bulgaria, which gets over 90 per cent of its gas from Russia, officials said they were working to find other sources, such as from Azerbaijan.

Poland has been a major gateway for the delivery of weapons to Ukraine and confirmed this week that it is sending the country tanks.

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