Poland, Bulgaria accuse Russia of utilizing pure fuel as ‘blackmail’

Polish and Bulgarian leaders, on Wednesday, accused Moscow of utilizing pure fuel to blackmail their international locations after Russia’s state-controlled vitality firm stopped supplying them with fuel. European Union leaders echoed these feedback and had been holding an emergency assembly on the Russian transfer.

The fuel cutoff to Poland and Bulgaria got here after Russian President Vladimir Putin mentioned that “unfriendly” international locations would want to start out paying for fuel in rubles, Russia’s forex, which Bulgaria and Poland refused to do.

Russian vitality big Gazprom mentioned in a press release that it hadn’t acquired any funds from Poland and Bulgaria since April 1 and was suspending their deliveries beginning Wednesday. And if these international locations syphon-off Russian fuel supposed for different European prospects, Gazprom mentioned deliveries to Europe might be decreased by that quantity.

$400 MILLION A DAY

European Commission President Ursula von der Leyen mentioned the announcement by Gazprom “is yet another attempt by Russia to use gas as an instrument of blackmail.”

Europe is just not with out some leverage within the dispute, because it pays Russia $400 million a day for fuel, cash Putin would lose with an entire cutoff.

Russia, nevertheless, rejected the concept it was utilizing blackmail whereas warning it might halt fuel provides to different European prospects if additionally they refuse to modify to paying in rubles.

Putin’s spokesman, Dmitry Peskov, argued that the Russian demand to modify to paying for fuel in rubles resulted from Western actions that froze Russian exhausting forex property. He mentioned these had been successfully “stolen” by the West in an “unprecedented unfriendly action.”

Polish Prime Minister Mateusz Morawiecki advised Poland’s parliament that he thinks the suspension was revenge for brand new sanctions towards Russia that Warsaw imposed over Russia’s invasion of Ukraine. Morawiecki referred to as it an “attack on Poland” and an instance of “gas imperialism” whereas vowing that Poland wouldn’t be cowed by the cutoff. He mentioned the nation was secure from an vitality disaster because of years of efforts to safe fuel from different international locations.

“We will not succumb to Russia’s gas blackmail,” he advised lawmakers, to applause. He additionally sought to guarantee residents that the fuel cutoff wouldn’t have an effect on Polish households.

INDEPENDENCE FROM RUSSIAN ENERGY

Some Poles and Bulgarians welcomed the cutoff for transferring them nearer to independence from Russian vitality.

“I don’t know what the results will be for regular citizens like myself,” mentioned Nina Rudnicka, a lecturer at Poznan University. “But I believe that one should not bow to Russia’s blackmail. It was the right decision not to change to payment in rubles.”

Dobrin Todorov, a resident of Sofia, the Bulgarian capital, mentioned given a “choice between freedom and dignity or gas, the answer is clear, in favour of freedom and dignity.”

“So we will go through this ordeal. It cannot be compared to the hardship and tribulations that the Ukrainian people are currently suffering,” Todorov added.

NEW POLISH SANCTIONS

The new Polish sanctions towards Russia, introduced Tuesday, focused 50 Russian oligarchs and firms, together with Gazprom. Hours later, Poland mentioned it had acquired discover that Gazprom was reducing off its fuel provides for failing to pay in Russian rubles. Poland’s fuel firm, PGNiG, mentioned the fuel provides from the Yamal pipeline stopped early Wednesday.

Russian fuel provides to each Poland and Bulgaria already had been anticipated to finish later this yr anyway.

Poland depends on coal for 70% of its vitality wants, with fuel solely making up round 7% of its vitality combine. Several years in the past, the nation opened its first terminal for liquefied pure fuel, or LNG, in Swinoujscie, on the Baltic Sea coast. A pipeline from Norway is because of begin working this yr.

Bulgarian Prime Minister Kiril Petkov, whose authorities has been reducing most of the nation’s previous ties with Russia, referred to as Gazprom’s suspension of fuel deliveries “a gross violation of their contract” and “blackmail.” He vowed to defend the nation’s pursuits and “support military-technical assistance to Ukraine.”

“Unfortunately, in the recent past we were treated as Russia’s fifth column. And there are many political and economic circles that protect Russia’s interests,” he mentioned. “We and our party will protect only Bulgarian interests.”

In Bulgaria, the principle customers of fuel are district heating firms. Bulgaria’s vitality minister mentioned his nation can meet the wants of customers for a minimum of one month.

“Alternative supplies are available, and Bulgaria hopes that alternative routes and supplies will also be secured at the EU level,” Energy Minister Alexander Nikolov mentioned.

Russia’s transfer raised wider issues that different international locations might be focused subsequent as Western international locations enhance their assist for Ukraine amid a warfare now in its third month.

The Greek authorities held an emergency assembly Wednesday in Athens. Greece’s subsequent scheduled cost to Gazprom is due on May 25, and the federal government should determine whether or not it is going to adjust to the demand to pay in rubles.

GREECE PLANS TO SWITCH TO DIESEL

Greece is ramping up its liquefied pure fuel storage capability, and has contingency plans to modify a number of business sectors from fuel to diesel as an emergency vitality supply. It has additionally reversed a program to scale back home coal manufacturing.

“It appears there is some posturing by Gazprom,” mentioned Gianna Bern, a University of Notre Dame finance professor. “There are probably fewer consequences to turning off natural gas supplies to Poland and Bulgaria than larger countries in Europe. Russia is definitely sending a message.”

If European nations determine to not pay in rubles, Russia can promote its oil elsewhere, comparable to to India and China, as a result of oil primarily strikes by ship.

It has fewer choices with pure fuel, as a result of the pipeline community that carries fuel from Russia’s enormous deposits in northwestern Siberia’s Yamal Peninsula doesn’t join with pipelines that run to China. And Russia solely has restricted services to export super-chilled liquefied fuel by ship.