Gazprom to Cut Some Supply to Shell

Shell has stated that it will endeavor to keep gas flowing to its European customers after Russian energy major Gazprom announced that it will halt supplies beginning tomorrow. Gazprom announced it would stop supplying gas to Denmark's Orsted and Shell for its contract to sell gas to Germany after both refused to pay in roubles, according to Reuters.

Shell informed the BBC that it will keep getting gas from other sources. The gas conglomerate stated that it would continue to phase out Russian fossil fuels. Gazprom's plan comes after European Union leaders announced a ban on most Russian oil imports by the end of 2022 to punish Moscow for invading Ukraine.

Russia has previously cut off gas supplies to Poland, Bulgaria, Finland, and the Netherlands in reaction to Western sanctions after the countries failed to comply with Russian demands to switch to rouble payment. The latest measure broadens the retaliation to include Germany and Denmark.

Vladimir Putin's decision has been interpreted as an attempt to support the Russian currency, which has been battered by sanctions, as increased foreign exchange demand for roubles is anticipated to enhance demand and push up the value of the currency.