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Europe lurches closer to energy crisis as Kremlin cuts off gas supply to Shell

The Telegraph

Europe lurches closer to energy crisis as Kremlin cuts off gas supply to Shell

British company loses access to Russian fuel following refusal to pay in roubles

Europe lurched closer to an energy crisis on Tuesday after the Kremlin cut off gas supplies to major buyers including Shell.

Russia’s state-owned gas supplier, Gazprom, said supplies to Shell in Germany as well as to Ørsted in Denmark will be cut off on Wednesday after they refused to bow to Putin’s demands to pay in roubles.

Gazprom cut supplies to the Netherlands on Tuesday after doing the same to Poland, Bulgaria and Finland this month, weaponising gas amid its war in Ukraine.

FTSE 100 company Shell produces fossil fuels itself, but also has a vast trading division that buys gas from companies such as Gazprom and sells it on.

The company said in March that it planned to withdraw from its involvement in Russian energy “in a phased manner”. It has now been forced to abandon the market immediately.

Responding to Gazprom’s statement, Shell said on Tuesday: “Shell has not agreed to new payment terms set out by Gazprom.

“We will work to continue supplying our customers in Europe through our diverse portfolio of gas supply.

“Shell continues to work on a phased withdrawal from Russian hydrocarbons, in compliance with applicable laws and regulations.”

The Shell contract cut by Gazprom involves a maximum of 1.2bn cubic metre of gas per year, delivered in Germany for Shell to sell where it is needed.

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