Russia stops gas transit through Poland

May 12, 2022 | BUSINESS

Moscow’s counter-sanctions ban the use of the Polish section of the Yamal-Europe pipeline

Russian energy major Gazprom said on Thursday it will not be able to use the Polish section of the Yamal-Europe pipeline for gas transit to Europe due to Moscow’s retaliatory sanctions.

Company spokesman Sergey Kupriyanov specified that the site belongs to EuRoPol GAZ, which is a joint venture between Gazprom and Polish gas major PGNiG. The latter is the operator of the Polish part of the Yamal-Europe gas pipeline.

On Wednesday, Moscow approved a list of companies in respect of which it will apply special economic measures. The list consists of 31 firms, including Polish EuRoPol GAZ, as well as the former German unit of Gazprom. The Russian-owned subsidiary was seized by the German authorities last month and could potentially be nationalized.

“For Gazprom, this means a ban on the use of a gas pipeline owned by EuRoPol GAZ to transport Russian gas through Poland,” the company said on its official Telegram channel.

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Russian President Vladimir Putin decreed on May 3 that no Russian entity will be allowed to make deals with those on the sanctions list, or even fulfil its obligations under existing deals.

The decree forbids the export of products and raw materials to people and entities on the sanctions list.

Putin said the decree was in response to the illegal actions of the US and its allies meant to deprive Russia and its citizens and legal entities of property rights or to restrict their property rights.

The Yamal-Europe gas pipeline passes through Russia, Belarus, Poland, and Germany. Russia supplies nearly 40% of Europe’s overall gas demand, and this route accounts for nearly 15% of the country’s westbound deliveries. The pipeline has been operating in reverse mode recently, sending gas from Germany to Poland after Warsaw refused to accept Moscow’s demand to pay in rubles.

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