The head of Conexus, Bariss, announced the cessation of gas supplies from Russia to the Baltic countries since April.

Since the beginning of April, natural gas from Russia has ceased to flow to Latvia, Lithuania and Estonia, Jauns.lv reports, citing the head of the operator of the Latvian gas transmission system Conexus Baltic Grid (Conexus) Uldis Barissa.

Baltic countries
Barris said that the Baltic countries receive gas through two channels – through the Klaipeda liquefied natural gas terminal and the Inčukalns underground gas storage. According to him, Russia’s statement to pay for fuel only in rubles was a signal that supplies from the country had been cut off, so they “can no longer be relied upon.”

From the point of view of the energy security of the state, it is definitely necessary to resolve the issue of building a second LNG terminal – the sooner the better

Uldis Bariss
Chairman of AS Conexus Baltic Grid
At the same time, the head of Conexus Baltic Grid noted that at the moment there is “atypically a lot of gas in the Inčukalns gas storage for this period”, so he did not see any reason for concern in the coming months.

On April 2, the first country in the European Union completely abandoned Russian gas. Lithuanian President Gitanas Nauseda said that Vilnius had made such a decision. The Ministry of Energy of the republic stated that the country’s demand for fuel is met by the Klaipeda liquefied natural gas (NGNG) terminal.

Causes
On March 23, Russian President Vladimir Putin announced the transfer of payments for gas supplies to unfriendly countries into rubles. According to him, Russia will refuse to accept payment for natural gas supplies in compromised currencies, including the dollar and the euro. This must be done as soon as possible, the head of state urged.

48countries
Russia declared unfriendly

In addition, Putin instructed the Central Bank and the government within a week to establish the procedure for the purchase of rubles on the domestic market by buyers of Russian gas. He explained that Russia would supply gas in accordance with the volumes and pricing principles specified in the contracts. In this case, only the payment currency will change.

On April 1, Gazprom began sending notifications to importers about the new procedure for paying for gas. “Notifications about the new settlement procedure in Russian rubles are officially sent to counterparties today,” the company stressed.

Europe’s reaction
Europe rejected Russia’s demand to pay for gas in rubles. This was stated by the official representative of the European Commission (EC) Eric Mamer. The G7 countries also refused to pay for Russian gas supplies in rubles. In their opinion, Moscow’s demand violates existing contracts.

French President Emmanuel Macron called it impossible to pay for Russian gas in rubles. Prime Minister Boris Johnson’s spokesman also announced the UK’s refusal to pay for blue fuel from Russia in rubles.

Russian gas stopped flowing from Poland to Germany. The physical flow of fuel through the Yamal-Europe pipeline at the border of the two countries has become zero. However, later it became known that Gazprom booked additional capacities of the Yamal-Europe gas pipeline.

Consequences
Hungarian Prime Minister Viktor Orban believes that the European Union will not replace Russian gas with American. Therefore, there will be no alternative to fuel from Russia, he is sure.

Political scientist Pierre-Emmanuel Thomann suggested that Europe would run into problems if it refused to pay for Russian gas in rubles. In particular, the decision will provoke a surge in prices and create difficulties for both the industry and the citizens themselves.

In turn, the investment strategist of Ari Capital Management Company Sergey Suverov said that the cessation of Russian gas supplies to Europe would entail catastrophic consequences for its energy sector. He admitted that the cost of blue fuel could rise to five thousand dollars per cubic meter.

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