Kushagra Bansal – Mumbai Uncensored, 3rd May 2022
PGNiG, Poland’s largest gas provider, has warned that all gas flows will cease on Wednesday.
On Wednesday, Russia will cut off gas supplies to Poland, escalating the stalemate between Moscow and Europe over energy supplies and the Ukraine crisis.
Moscow seems to be following through on a promise to cut off gas supplies to countries who refuse to pay in rubles, as Vladimir Putin has demanded. Europe has stated that doing so would be a violation of sanctions and would significantly boost Russia’s economy. Poland has been particularly vocal in its protest against Russia during the conflict.
The decision, which European leaders have described as “blackmail,” comes as Russia’s economy wilts under sanctions and Western countries continue to deliver additional armaments to Kyiv despite Kremlin warnings to back off.
Prime Minister Mateusz Morawiecki told reporters in Berlin, “I can confirm we’ve received such threats from Gazprom, which are linked among other things to the means of payment.” “Poland is adhering to the agreements, and Russia may attempt to punish Poland” by halting deliveries.
Gazprom (GAZP.MM), Russia’s gas export monopoly, has halted gas deliveries “due to a lack of ruble payments,” according to a directive signed by Russian President Vladimir Putin to mitigate the impact of sanctions.
As traders evaluated the risk of other European countries being affected next, European gas prices jumped as high as 17%. Cutoffs have been looming down for weeks, but there was some hint last week that the European Union was considering a way out of the impasse.
Although the government has announced that they have sufficient gas in store, Poland has to prepare itself for a life without Russian gas supplies. They have been advocating stronger measures against Russia but other EU countries have not been so supportive.
