Russia’s state-owned gas giant, Gazprom, says that it plans to hit peak supply of gas as it is set to transmit about 108.3 million cubic metres of gas to Western Europe on Monday despite the ongoing war with Ukraine and the heavy sanctions by some western leaders and their allies.
The high transmission rates by Russia is mostly attributed to a spike in demand after a brief period of cold weather prompted an unusually high level of home heating.
This is coming as Russia has insisted that unfriendly foreign countries will start paying for gas supply in the Russian currency, the roubles, or they will cut supplies.
The Kremlin appears unfazed by the worsening conflict in Ukraine with heavy humanitarian crisis and threats of further sanctions by the western countries and their allies.
The Monday gas supply was nearly at the peak of contractual limits, just as Gazprom transmitted 108.4 million cubic metres on Sunday.
What you should know
- Recall that earlier in February, Russian President, Vladimir Putin, ordered the invasion of Ukraine on the alleged pretext of preventing a genocide against ethnic Russians and alleged calls for assistance from Russian-backed separatist leaders in eastern Ukraine.
- This has led to a wide range of unprecedented sanctions on Russia by the United States of America and Western European countries. However, Gas has so far been exempted from such sanctions.
- In what appears as a retaliation, Russia earlier in March informed unfriendly countries that they must start paying for gas in roubles or it will cut supplies.
- Vladimir Putin subsequently signed a decree stating buyers must open rouble accounts in Russian banks from Friday.
- This is seen as an attempt to boost the rouble, which has been hit by Western sanctions, with the signed decree meaning that foreign buyers of Russian gas would have to open an account at Russia’s Gazprombank and transfer euros or US dollars into it.