Gazprom Suspends Gas Deliveries to Dutch Trader GasTerra

People walk in front of a banner with the Gazprom logo at the Dvortsovaya Square in St. Petersburg, Russia, 27 May 2022. (EPA)
People walk in front of a banner with the Gazprom logo at the Dvortsovaya Square in St. Petersburg, Russia, 27 May 2022. (EPA)
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Gazprom Suspends Gas Deliveries to Dutch Trader GasTerra

People walk in front of a banner with the Gazprom logo at the Dvortsovaya Square in St. Petersburg, Russia, 27 May 2022. (EPA)
People walk in front of a banner with the Gazprom logo at the Dvortsovaya Square in St. Petersburg, Russia, 27 May 2022. (EPA)

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 two companies 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% owned by Dutch government entities and 25% 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 Dutch 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.

A statement from Gazprom said that its suspension of gas supplies to GasTerra will continue until payments are settled in line with the Russia-proposed scheme.

GasTerra said that it had repeatedly asked Gazprom to adhere to its contractual payment methods and delivery obligations.

"It is not possible to say in advance what impact the dropping off of 2 bcm of Russian gas will have on the supply and demand situation in the European market," the Dutch company added.

Economy Affairs Ministry spokesperson Pieter ten Bruggencate said the Netherlands would not initiate its emergency gas plan to ask industrial users to reduce consumption.

"This is not yet seen as a threat to supplies," he said.

A spokesperson for the country's national grid operator, Gasunie, said it does not expect disruption to the grid as a result of Gazprom ceasing deliveries to GasTerra.



Egypt Quarterly Current Account Deficit Eases to $2.1 Billion on Higher Remittances

A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)
A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)
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Egypt Quarterly Current Account Deficit Eases to $2.1 Billion on Higher Remittances

A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)
A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)

Egypt's current account deficit narrowed to $2.1 billion in January to March 2025 from $7.5 billion in the same period a year earlier, the central bank said on Tuesday.

The central bank attributed the slimmer deficit to the increase in remittances from Egyptians working abroad, as well as a rise in the services surplus due to higher tourism revenue.

Oil exports declined to $1.2 billion, from $1.4 in the year earlier, while imports of oil products rose to $4.8 from $3.4 billion.

Egypt has sought to import more fuel oil and liquefied natural gas this year to meet its power demands after disruptions to gas supply led to blackouts over the last two years.

Concerns over supplies increased after the pipeline supply of natural gas from Israel to Egypt decreased during Israel’s air war with Iran last month.

Revenues from the Suez Canal, declined to $0.8 billion in the third quarter of the country’s financial year, from $1 billion the same time a year ago, as Yemeni Houthis' attacks on ships in the Red Sea continued to cause disruption.

The Iran-aligned group says it attacks ships linked to Israel in support of Palestinians in Gaza.

Meanwhile, Egypt’s tourism revenues reached $3.8 billion, compared to $3.1 billion in the same period in 2023/24.

Remittances from Egyptians working abroad increased to $9.3 billion, from $5.1 billion. The increase in remittances has helped to reduce the wider trade deficit.

Foreign direct investment hit $3.8 billion, compared to $18.2 billion in the same quarter a year before.

Egypt has suffered an economic crisis exacerbated by a foreign currency shortage, which forced it to undergo economic reforms under an $8 billion IMF program that included allowing its pound to depreciate sharply last year.