Russia Halts Gas Exports to Poland and Bulgaria
Europe is heavily reliant on Russia for energy exports, and in turn Russia is reliant on the EU for income. This relationship has been increasingly strained as a result of the Russian aggression in Ukraine. Photo: Reuters, via Alarabiya
Poland and Bulgaria were cut off from Russian gas exports by energy giant Gazprom on Wednesday, April 27, just over two months since the start of the Russian invasion of Ukraine. The company announced that services were suspended to Polish gas company PGNiG and Bulgaria's Bulgargaz after they failed to pay in Russian rubles, which was a requirement put in place by President Vladimir Putin in an effort to boost the currency and ease the blows of international sanctions on the country.
Later on Wednesday, the Ruble skyrocketed to more than a two-year high against the euro in Moscow trade. Simultaneously, gas prices in Europe shot up over 20 percent on Wednesday morning before dropping back down.
Bulgarian Prime Minister Kiril Petkov and European Commission President Ursula von der Leyen did not shy away from calling the move from Moscow an act of blackmail. Polish Prime Minister Mateusz Morawiecki stated that he believes the real reason behind the gas cutoff had more to do with Polish support for Ukraine and vocal opposition of the Kremlin rather than a failure to pay in the Russian currency.
Aside from putting additional pressure on previously struggling economies, further moves to suspend other countries from energy imports would likewise harm Russia by reducing the inflow of income the country desperately needs in the midst of the sanctions imposed on it. Europe as a whole currently pays Russia roughly $400 million per day for gas – a sum of money that is sure to be noticed if it were to disappear in the event of a full shutdown of gas exports to the continent. Nonetheless, top Russian lawmaker Vyacheslav Volodin praised the decision to halt services to the two countries, and called for continued retribution against other unfriendly countries.
Polish Prime Minister Mateusz Morawiecki gave a speech in front of Gaz-System in Rembelszczyzna, near Warsaw, on April 27 after Russia cut gas to Poland and Bulgaria. Photo: AP Photo/Czarek Sokolowski
Beyond furthering tensions between Russia and the West, the effective weaponization of the gas supply by the Kremlin raises the challenge of maintaining a unified European front against Russian aggression in Ukraine. Each individual EU member state reliant on Russian gas exports must decide their path forward in terms of sanctioning Moscow and protecting their own energy interests. The European Commission has agreed that EU buyers can engage with Russia’s payment demands so long as certain conditions are met, given the fact that so many EU members are reliant on Russian energy. Germany, Austria, and Hungary are among the countries that have arranged to continue payment without violation to the Russian stipulations.
Deputy Minister of Foreign Affairs Marcin Przdacz voiced that Poland had already considered the possibility of being cut off from Russian gas, and would find a way around using Gazprom supplies including looking towards “options to get the gas from other partners,” such as the US and gulf states.
The lasting effects of this gas suspension remain to be seen, but it is certain that Europe is in the midst of reconsidering its reliance on Russian exports. The EU currently obtains about 40 percent of its gas from Russia, but has indicated a desire to further reduce this dependence even before the start of the conflict in Ukraine. This transition could lead to a rise in energy prices in other parts of the world, as Europe looks to diversify its energy suppliers. Wednesday’s decision to halt gas services to Poland and Bulgaria serves as a reminder to all of Europe about the potential instability and unreliability of Russia as its vital energy supplier; perhaps the future of EU energy needs to be reconsidered entirely.