The European Commission considers Gazprom’s decision to suspend supplies to Poland and Bulgaria a breach of Russia’s contracts, she said, adding that there are no immediate risks for gas supply to the European Union, though the European Commission believes EU states should start getting prepared for suspension of Russian gas deliveries. The commissioner also admitted that the European Union cannot fully replace Russian gas.
According to Simson, the mechanism offered by Moscow of transfering euros to Gazprombank followed by the conversion of the payment into rubles is "a clear breach of sanctions as they provide assets for the operation of the Central Bank."
"Paying in rubles through the conversion mechanism managed by the Russian public authorities and a second dedicated account in Gazprombank is a violation of the sanctions and cannot be accepted," she said, adding that "a more detailed guidance on what companies can and cannot do within the sanctions framework" would be provided.
Most European companies are to make their next gas payments in the middle or at the end of May, according to the commissioner.
All ministers condemned Gazprom’s decision to stop supplies to Poland and Bulgaria, Simson said, noting that this is considered a breach of contracts, as well as an attempt to divide the EU.
"At this stage there are no immediate risks for Europe’s security of supply," she said. Bulgaria and Poland that no longer receive any gas from Russia, are provided via alternative routes through Greece and Germany.
That said, the European Commission urges the EU nations to starting preparing a plan of action in case gas supplies from Russia are halted.
The European Union currently receives liquified natural gas in record volumes, with last week’s deliveries reaching 0.4 bln cubic meters per day, the commissioner said, adding that the level of storage in Europe stands at 32%, rising in all countries.
Meanwhile, Simson admitted that the EU cannot fully replace 155 bln cubic meters of Russian gas per year by supplies from other sources, and urged the EU countries to step up the development of alternative energy.
