Gazprom says it will halt gas supplies to France's Engie
Russia’s Gazprom says it will halt all gas deliveries to French utility Engie from Thursday due to its failure to fully pay for deliveries made last month.
In a statement on its official Telegram channel on Tuesday, Gazprom said that Engie did not make those payments in time and that it was now obliged to cut deliveries under Russian law.
The company, however, said that it will resume supplies as soon as it gets the payments for the already supplied gas.
"At the close of the business day on August 30, Gazprom Export did not receive full payment for gas supplied to Engie (France) in July under the existing contracts." Gazprom said in its statment.
"In this regard, Gazprom Export notified Engie of the complete suspension of gas supplies starting from Sept. 1, 2022, until the moment it receives full payment for the gas it has supplied," it added.
In March, the Russian government barred the firm from gas deliveries to foreign buyers who fail to pay in time.
Earlier on Tuesday, Engie said it had prepared itself for disruptions in Russian gas supply, noting, it will continue to provide clients with gas flows.
The company said it had "already secured the necessary volumes to ensure the supply of its customers and of its own needs."
This comes as tensions remain between Russia and the West over Moscow’s military operation in Ukraine.
Natural gas prices have soared in Europe to all-time highs since the West began unleashing waves of sanctions against Moscow.
Ever since, Gazprom has drastically reduced the deliveries, saying that the anti-Russia sanctions have blocked the delivery of a turbine needed to stream gas to Europe via pipeline.
The company said last month that the delayed return of the turbine from Canada, where the unit was being serviced, was behind the initial reduction in gas deliveries via the Nord Stream 1 gas pipeline in June.
The European Union (EU), however, has accused Russia of cutting supplies in retaliation for the sanctions.
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