This video is an update on the situation regarding Russian energy exports to Europe.
Gas supplies to Germany – the NordStream & the Yamal-Europe pipeline
In late February of this year, Germany brought an end to the NordStream gas pipeline project.
This was done after Russia recognised the Donetsk and Luthansk regions as separate states, Republics in their own right. This was before the incursion into Ukraine.
In response, at the beginning of April, the Russian, state owned energy corporation Gazprom stopped delivering natural gas to Germany via the Yamal-Europe Pipeline.
As a result of the Russian military campaign in the Ukraine, the EU put in place certain sanctions on Russia
Lithuania
On 1st of April, Lithuania announced that it would be banning the import of Russian gas as a result of the alleged war crime atrocities committed by Russian troops in the Ukraine.
Payment in Rubles
There have been issues between Russia and the EU regarding not just supply, but payments as well.
In March of this year Russian authorities demanded that gas be paid for in Rubles rather than Dollars and Euros.
This demand proved to be divisive in the EU.
Poland and Bulgaria refused to comply and Moscow’s response was to cut off gas supplies to PGNiG in Poland and Bulgargaz in Bulgaria. This occurred on 26th April.
Historically, Poland imported some 50% of its Natural gas from Russia and Bulgaria some 90% - so we are talking fairly large amounts.
Polish and Bulgarian authorities contested this new measure, claiming that it amounted to breech of contract, but anyway.
In contrast, much to the chagrin of other EU countries, Hungary complied with Russian demands.
On the 6th April, Prime Minster of Hungary, Victor Orban, announced that Hungary was prepared to pay for Russian gas in Rubles as demanded by Putin and the Russian authorities. Hungary, then was the first country to break ranks with the EU directive.
Workarounds
Also, it would seem that some big energy companies in Europe have been buying Russian gas in Rubles on the sly. They are engaged in “workarounds”.
As I understand it, companies Italy, Germany and Austria have opened an accounts in Gazeprombank in order to comply with the demands from Russian authorities to pay for gas in Rubles.
Uniper SE in Germany, Eni SpA in Germany and OMV AG in Austria have opened an accounts in Gazeprombank in order to comply with the demands from Russian authorities to pay for gas in Rubles.
And this apparently does not breech sanctions. The two sets of guidelines issued by the EU have allowed room for manouvre.
