Dutch gas trader GasTerra: Deliveries from Gazprom to end May 31 | Oil and Gas News

GasTerra has refused to agree to Moscow’s demands for payment in roubles, the Dutch company said on Monday.

GasTerra will no longer receive gas from Russia’s Gazprom from May 31 after refusing to agree to Moscow’s demands for payment in roubles, the Dutch company said on Monday.

GasTerra, which buys and trades gas on behalf of the Dutch government, said it had contracted elsewhere for the 2 billion cubic meters (bcm) of gas it had expected to receive from Gazprom through October.

The company is 50 percent owned by Dutch government entities and 25 percent each by Shell and Exxon.

“We understand GasTerra’s decision not to agree to Gazprom’s unilaterally imposed payment conditions,” Dutch energy minister Rob Jetten wrote on Twitter. “This decision will have no consequences for the physical delivery of gas to Dutch households.”

A GasTerra statement said the company had decided not to adopt the system that Russia had demanded, which involved the setting up of accounts that would be paid in euros and then swapped for roubles.

The company said such measures could violate European Union sanctions and also said the payment route presented too many financial and operational risks.

It had repeatedly asked Gazprom to adhere to its contractual payment methods and delivery obligations, GasTerra added.