GasTerra will not go along with Gazprom's payment demands

Groningen, 30 May 2022

Dutch gas trader GasTerra has decided not to comply with Gazprom’s one-sided payment requirements. These payment requirements are set out in a decree passed by Russian President Vladimir Putin regarding payment for the supply of Russian gas. In response to GasTerra’s decision, Gazprom declared to discontinue supply with effect from 31 May 2022.

In a decree issued on 31 March, Russian President Putin stated that, from now on, Russian gas would have to be paid for in roubles. This means that anyone wanting to buy gas would have to open both a euro and a rouble account with Gazprombank in Moscow. GasTerra will not go along with Gazprom’s payment demands. This is because to do so would risk breaching sanctions imposed by the EU and also because there are too many financial and operational risks associated with the required payment route. In particular, opening accounts in Moscow under Russian law and their control by the Russian regime pose too great a risk for the Groningen company.

The cessation of supply by Gazprom means that, between now and 1 October 2022, the date on which the contract ends, approximately 2 billion m³ of contracted gas will not be delivered. GasTerra has anticipated this by buying gas from other providers.
The European gas market is highly integrated and extensive. However, it is impossible to predict how the lost supply of 2 billion m³ of Russian gas will affect the supply/demand situation and whether the European market can absorb this loss of supply without serious consequences.

GasTerra has repeatedly urged Gazprom to respect the contractually agreed payment structure and supply obligations, but to no avail.

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Note for the editors:

Journalists may contact GasTerra’s spokesperson, Jan Hendrik Annema, for further information and clarification: +31 (0)6. 1100. 5595 or jan.hendrik.annema@gasterra.nl