Denmark’s largest power firm Orsted says Russia minimize off its fuel provide as a result of it refused to pay in rubles
Denmark’s largest power firm Orsted says Russia minimize off its fuel provide as a result of it refused to pay in rubles
Denmark’s largest power firm mentioned Russia minimize off its fuel provide on June 1 as a result of it refused to pay in rubles, the newest escalation over European power amid the battle in Ukraine.
Russia beforehand halted pure fuel provides to Finland, Poland and Bulgaria for refusing a requirement to pay in rubles. And on Tuesday, the faucet was turned off to the Netherlands. Danish power firm Ørsted mentioned it nonetheless anticipated to have the ability to serve its clients.
“We stand firm in our refusal to pay in rubles, and we’ve been preparing for this scenario,” Ørsted CEO Mads Nipper mentioned. ”The state of affairs underpins the necessity of the EU changing into impartial of Russian fuel by accelerating the build-out of renewable power.”
In response to Western sanctions imposed in opposition to Russia for its invasion of Ukraine, Russian President Vladimir Putin signed a decree saying international consumers wanted to pay in rubles for Russian fuel as of April 1.
Moscow supplied clients receiving its pure fuel to determine an account in {dollars} or euros at Russia’s third-largest financial institution, Gazprombank, then a second account in rubles. The importer would pay the fuel invoice in euros or {dollars} as laid out in contracts and direct the financial institution to change the cash for rubles.
“This is totally not acceptable,” Danish Prime Minister Mette Frederiksen mentioned. “This is a kind of blackmailing from Mr. Putin. We continue to support Ukraine and we distance ourselves from the crimes that Mr. Putin and Russia commit.”
Russian state fuel big Gazprom confirmed on Wednesday that it stopped fuel provides to Shell Energy Europe and Denmark’s Ørsted after the 2 firms refused to abide by the ruble-payment mechanism.
Gazprom mentioned it hadn’t obtained funds from both firm for fuel equipped in April and due to this fact was halting deliveries. The Danish Energy Agency mentioned that within the first 18 weeks of 2022, Russian fuel amounted to roughly 25% of EU fuel consumption. The company mentioned that Denmark dropping its provide wouldn’t have quick penalties
“We still have gas in Denmark and consumers can still have gas delivered,” Kristoffer Böttzauw, head of the Danish Energy Agency. mentioned in a press release on Monday. “But we have plans ready if the situation worsens.”
Since there isn’t any pipeline going immediately from Russia to Denmark, Russia will be unable to immediately minimize off fuel provides to Denmark, which nonetheless will be capable to get it, Ørsted mentioned. Russia’s transfer implies that Denmark should buy extra fuel on the European fuel market, the corporate added.
Denmark has been a web exporter of pure fuel for a few years, however as a result of its Tyra subject within the North Sea is being renovated, the nation at the moment imports about 75% of its fuel consumption by way of Germany. The Tyra subject is predicted to reopen in mid-2023.
In Denmark, some 3,80,000 households use pure fuel for heating by way of fuel boilers, the company mentioned. On Tuesday, the leaders of the European Union agreed to chop round 90% of all Russian oil imports over the subsequent six months. The 27-nation bloc has relied on Russia for 25% of its crude and 40% of its pure fuel.
Source: www.thehindu.com
