Russia Cuts Off Gas Supply to Poland and Bulgaria

• Russia halted gas supplies to Poland and Bulgaria in late April after the countries refused to pay for gas in rubles.

• Moscow has demanded that European buyers pay for gas in rubles, depositing euros into Gazprombank account, which are then converted into rubles by Russia’s central bank.

• Poland and Bulgaria are relatively dependent on Russian gas imports. However, both countries will be able to find alternatives in the short-term, as long as Russia does not cut off all gas supplies to the EU.

• It is unclear whether the payment method demanded by Russia violates EU sanctions. Buyers in Italy and Germany plan to make payments in euros later this month.

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