Russia's Gazprom will halt gas supplies to the Netherlands' partly state-owned energy firm GasTerra on Tuesday after it refused to pay in rubles, the Dutch company said.
Following Russia's February 24 invasion of Ukraine, Moscow has asked clients from "unfriendly countries" -- including EU member states -- to pay for gas in rubles, a way to sidestep Western financial sanctions against its central bank.
"In response to this decision by GasTerra, Gazprom has announced that it will discontinue supply with effect from May 31, 2022," GasTerra said on Monday.
The Russian energy giant's move means that two billion cubic metres of gas will not be supplied to the Netherlands between now and October, GasTerra said, adding that it "has anticipated this by purchasing gas elsewhere."
"GasTerra has repeatedly urged Gazprom to respect the contractually agreed payment structure and delivery obligations, unfortunately to no avail," it said.
GasTerra is jointly owned by energy giants Shell and Esso, Dutch gas firm EBN, and the Dutch state, which has a 10-percent stake.
The Dutch government said it "understands" GasTerra's decision not to comply with Gazprom's "unilateral" demand."This decision has no consequences for the physical supply of gas to Dutch households," Climate and Energy Minister Rob Jetten said on Twitter.