Russian owned energy company Gazprom has cut off annual gas supplies to atleast 6 European countries, Poland, Bulgaria, Finland, Denmark, Germany, and Netherlands, since the sanctions introduced on Russia after the Russia Ukraine war by the West. The Russian President Vladimir Putin on 23rd March, 2022 made an announcement where by payments for the Russian Gas pipeline should be switched from U.S dollars or Euros to Rubles for ‘unfriendly states’.
Ukrainian Oil and gas company Naftogaz Ukrayiny and Russian gas supplier Gazprom has already disputed over natural gas supplies, prices, and debts. These issues between them have grown beyond proportion that has ended up threatening the gas supplies to EU provided by Russia transported via Ukraine. Approximately 80% of the energy travels through Ukraine before reaching the European Union soil. This dispute was raised in 2010, by a Stockholm court of arbitration in which the Ukrainian Gas company was asked to return 12.1 billion cubic metres (430 billion cubic feet) of gas to RosUkrEnergo, a Swiss based Energy company which the Russian Gas company Gazprom has 50% stake.
Expressed by the Ukrainian President Vladimir Zelensky “this is an open gas war that Russia is waging against United Europe”
Russia’s retaliation mode from the sanctions introduced by the international opponents has, put energy markets raise prices for consumers, threatened global recession mode and energy security threats. The gas crisis prompted Germany to declare an emergency program and stepped-up rationing supplies. Latvia also agreed to reduce natural gas demand by 15% this winter to save gas.
Russian historically one of the European Union gas supplier with 40% demand has reduced deliveries in evident aggression against the sanctions. According to the Cologne Institute for Economic Research points out by now one in four Germans has slipped to rationing energy and saving it for the cold weather as heating and lighting would be matters of heavy concerns and therefor may affect the other expenses as well. This might affect the lower income sections of the society. France and U.K also steps up measures to reduce the energy consumptions.
Member states of European Union has committed to reduce gas demand by 15% and shall be regulated by the European Council making it mandatory. Qatar has signed a declaration on May20, 2022, with Germany agreeing to supply LNG from 2024.