In a brief statement, gas giant Gazprom said shipments were halted because Latvia violated “conditions for gas extraction.” He did not provide further details. The statement likely referred to a refusal to meet Russia’s demand for gas payments in rubles rather than other currencies. Gazprom previously suspended shipments to other European Union countries, including the Netherlands, Poland and Bulgaria, because they would not pay in rubles. The immediate effects of the cut were not clear. Latvian media reported this week that the country had resumed buying Russian gas from another supplier. After the EU imposed sanctions on Russia over its invasion of Ukraine, Russian President Vladimir Putin said in March that “unfriendly foreign buyers” should do business with Gazprom in rubles instead of dollars and euros. The Kremlin said importers had to set up an account in dollars or euros at Russia’s third-largest bank, Gazprombank, and then a second account in rubles. The importer pays the gas bill in euros or dollars and directs the bank to exchange the money for rubles. Many countries have refused to comply, saying the new payment system could put them in a position to violate the terms of the sanctions.
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