Europe looks for solutions as Russia squeezes supply of natural gas

The European Union (EU) is trying to find suppliers for natural gas because the Russian Gazprom has cut its supplies to two nations in the EU. There are fears that other relevant companies will follow soon.

The move came as Russia invaded Ukraine, and fears sparked in Brussels regarding energy firms and nations circumventing sanctions on Russia. Gazprom is an energy firm that the Russian state owns, and it has cut natural gas supplies to Bulgaria and Poland because the nations refused to pay in Rubles. Vladimir Putin requested that they get paid in Rubles due to Ukraine's support from the West.

Europe roughly imports 40% natural gas from Russia, and the pressure on them is increasing to find alternative suppliers. An anonymous EU official stated that the move came as an eye-opener for people who thought that gas wouldn't be used as leverage by Russia.


Ursula von der Leyen, the President of the European Commission, accused Russia of blackmailing the bloc. Russian spokesperson Dmitry Peskov stated that Russia is not leveraging gas and is a reliable partner for natural gas supply. He declined to answer how many countries agreed to pay in Rubles.

There could be increased pressure if Gazprom does not supply natural gas to other nations in the European Union. Russia warned that other countries would face the same action if they did not pay in Rubles. EU's executive arm, the commission, opposes the moves by Russia as it would breach the sanctions at present.

The commission is trying to be less dependent on the gas from Russia and signed an agreement with the USA. It will see the EU get a minimum of 15 billion cubic meters of natural gas in a liquified form in 2022.

Von der Leyen stated that they are working with the Member States to procure gas from other partners. Brussels, on the other hand, needs to decide how it will pay for natural gas to Russia without having to breach the bloc's rules.

In March, Russia issued a decree that said that the companies in Europe would have to pay in Euros for gas to Gazprombank. It is because it is not a part of the European sanctions. The cash would then be converted to Rubles.