Russia’s Gazprom is to suspend gas supplies from Poland’s PGNIG from 08:00 CET on Wednesday, breaking the contract

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Russia’s main state-owned gas supplier Gazprom informed Polish gas company PGNIG on Tuesday that it would halt gas deliveries from 08:00 CET on Wednesday, a breach of Yamal’s contract, PGNIG said according to Reuters.

PGNIG said it would take steps to restore gas flow in accordance with Yamal’s contract, adding that it was prepared to obtain gas from various other sources, including gas connections west and south of the Polish border.

PGNIG said it is in contact with the Gaz system and the companies are monitoring Gazprom’s decision to cut off gas supplies.

Bloomberg described the news as a “major escalation in the fight between Moscow and Europe over crucial energy supplies”, noting that it comes against the backdrop of a standoff between the two sides over Russian gas payment demands. in rubles.

Market reaction

Once reports that Russia had cut off gas flows to Poland from Wednesday started making the rounds on Twitter and the financial press, markets started to move. WTI recently hit session highs in the middle of $102.00, while the S&P 500 is currently trading at session lows and testing 4200. The DXY also remains firmly in the lead and at its highs. levels since March 2020 in the area of ​​102.20.

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