On Tuesday, one day after G7 countries rejected Russian President Vladimir Putin’s demand for natural gas payments to be made in rubles, gas supplies from Russia via the Yamal-Europe pipeline through Germany’s Mallnow point on the German-Polish border fell to zero.
Reuters: gas flows through the Yamal-Europe pipeline have dropped to zero. pic.twitter.com/9ADfKhv3Cn
— NEXTA (@nexta_tv) March 29, 2022
Gas operator Gascade reported that eastbound gas flows into Poland from Germany stood at 1,451,155 kilowatt-hours per hour (kWh/h) by 1 pm local time, after which this fell to zero.
Nevertheless, gas delivery from Russia to Europe remained steady on the other two important pipelines—gas flows to Germany via Nord Stream 1 pipeline across the Baltic Sea stood at 73,389,870 kWh/h and flows from Slovakia into Ukraine via the Velke Kapusany border point were recorded at 882,249 megawatt-hours (MWh) per day, according to Slovakian operator TSO Eustream.
Interfax news agency claimed that Russian gas giant Gazprom booked some capacity to supply gas to Germany through the Yamal-Europe gas pipeline for Tuesday night and Wednesday but the actual flow is not confirmed since they do not always use the booked capacity.
This latest development comes after Putin announced last week that Moscow will no longer accept the dollar and euro payments from “unfriendly states” for its natural gas exports in retaliation to a barrage of Western economic sanctions that have frozen billions of dollars worth of foreign assets. “Russia will continue, of course, to supply natural gas in accordance with the volumes and prices, according to the pricing principles fixed in the contracts concluded earlier. Unlike some colleagues, we value our business reputation as a reliable partner and supplier,” Putin said.
However, the G7 economies—Canada, France, Germany, Italy, Japan, the United Kingdom (UK), and the United States (US)—rejected his demand, with German Vice-Chancellor Robert Habeck calling it a “breach of contract.”
Following the Russian invasion of Ukraine on February 24, the West has imposed severe sanctions targeting the Russian economy that have caused the ruble to fall to record lows. To offset the consequences of Western sanctions and strengthen the currency, Putin demanded payment in rubles. Before the G7 had refused Russia’s demands, the Kremlin had warned of the consequences of not agreeing to the request.
Aside from the Yamal pipeline, Russia has also previously warned of shutting down gas supply to Europe via Nord Stream 1. Furthermore, the $11 billion Nord Stream 2 pipeline has been suspended by Germany to retaliate against Russia for its recognition of Luhansk and Donetsk as independent republics.