Russia stops gas sales to Denmark

Danish energy company Ørsted said that Russian gas company Gazprom Export would cut gas supplies to Denmark from June 1st after the Danish company refused to pay in rubles.

Danish energy company Ørsted
Danish energy company Ørsted said it had been told by Russian state gas company Gazprom that supplies to Denmark would be cut from June 1st. File photo: Mads Claus Rasmussen/Ritzau Scanpix

In a statement late on Tuesday, Ørsted said Gazprom Export had informed it that its gas supply would be halted at 6am.

The Danish company had anticipated the move and had previously said it was filling up its storage facilities in Denmark and Germany to secure gas supplies to their customers.

“Since there is no gas pipeline going directly from Russia to Denmark, Russia will not be able to directly cut off the gas supplies to Denmark, and it will thus still be possible for Denmark to get gas,” Ørsted said in Tuesday’s statement.

“However, this means that the gas for Denmark must, to a larger extent, be purchased on the European gas market,”

“We expect this to be possible,” it said.

Russia has said it will only accept payment for natural gas deliveries in its national currency, with buyers required to set up ruble accounts or have their taps turned off.

The measure came in response to a litany of international sanctions on Moscow after it invaded Ukraine on February 24th.

On May 21st, Russia halted supplies to its neighbour Finland — which has angered Moscow by seeking NATO membership — after energy group Gasum also refused to pay in rubles.

Moscow had already cut off Poland and Bulgaria.

And on Tuesday, the partly state-owned Dutch energy firm GasTerra said Gazprom had suspended its gas supplies for the same reason.

READ ALSO: Danish consumers ‘should get used to’ high petrol costs after EU’s Russian oil decision

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


Danish energy company suspends fixed rate contracts

A local Danish energy provider has suspended fixed rate contracts with private and business customers.

Danish energy company suspends fixed rate contracts

Recent months have seen both households and companies in Denmark suffer from drastic increases in the price of electricity. The effects are now impacting electricity customers who signed deals to protect themselves against price changes, broadcaster DR reports. 

Electricity provider SK Energy, which is located in the Zealand town of Slagelse, made the decision to suspend fixed rate business and private contract in light of rocketing electricity and gas prices, DR writes.

The decision was described as regrettable but necessary by the company’s CEO Henrik Birch.

“This is a highly unusual situation and I can only deeply apologise for us doing this. But I think we have to do it because we don’t know what will happen this coming winter,” Birch told DR.

The CEO also said he understands customers who feel let down after signing fixed rate contracts to protect themselves against price changes, DR writes. He added he hoped they would understand the nature of the situation.

The changes take effect three months from now.

The average price of electricity in Denmark was in May reported to have climbed 18 percent from the last quarter of 2021 to the first of 2022.

Several factors are behind the upward trend in the price of electricity, but the primary reason is the cost of natural gas, which has multiplied since late 2021. That has resulted in higher overheads for electricity suppliers. Gas supplies from Russia to Europe have meanwhile broken down following the Russian invasion of Ukraine.

READ ALSO: ‘Shop around’: Danish agency as electricity prices climb 18 percent in three months