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23 May, 2022 07:36

Poland terminates Russian gas supply contract

The agreement was set to expire at the end of the year
Poland terminates Russian gas supply contract

The Polish government has announced it terminating a Russian natural gas contract without waiting for its expiry at the end of 2022. Along with Bulgaria and Finland, Warsaw has refused to accept Russia’s new ruble-based payment mechanism introduced in late March.

“After 30 years, it can be stated that relations in the gas industry between Poland and Russia have ceased,” Piotr Naimsky, Polish Commissioner for Strategic Energy Infrastructure said.

The official added that the Polish section of the Yamal-Europe gas pipeline, which was previously used to pump natural gas from Russia, could be used for supplies from Germany.

“This section of the gas transmission infrastructure is owned by EuroPolGaz. The section, as well as the entire gas transmission system in Poland, is operated by GAZ-Sistem,” Naimsky said.

Moscow's ruble payment demand applies to countries that have imposed sanctions on Russia over its military operation in Ukraine, and have frozen the country’s foreign currency reserves.

A number of European energy companies have complied with Russia's new payment scheme. Earlier this month, Brussels issued updated guidance on how EU businesses can pay for Russian gas in rubles without breaching the sanctions introduced against the country.

Russia’s Gazprom halted gas deliveries to Poland in late April after the country’s energy company PGNiG refused to pay for supplies in rubles. Poland continued to receive reverse Russian gas supplies from Germany, according to Gazprom.

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