Expiration of consumables
Latvian gas transmission operator Conexus reports that Russian gas supplies to Latvia have been halted since July 30. The interruption aligns with recent moves in the regional energy market and reflects broader shifts in supply contracts across Europe, where countries are rethinking payment terms and supplier relationships. This change marks a critical moment for Latvia as it balances energy security with the realities of international energy politics. The halt is described as a consequence of noncompliant gas withdrawal conditions, according to a statement attributed to Gazprom on its Telegram channel. The development comes amid a wider context of sanctions and countermeasures shaping European energy flows, with Latvia explicitly refraining from paying in rubles where sanctions or policy constraints apply. As the situation evolved, multiple European nations faced suspensions or disruptions tied to payment currencies and contract terms, underscoring the fragility of cross-border gas supply in times of geopolitical tension. The underlying shifts reflect how governments, regulators, and energy companies navigate the intersection of sanctions, currency choices, and long-term energy planning in the face of evolving conflict dynamics. Attribution: reported by Gazprom and regional energy authorities, with additional context from European economic policy discussions.
According to a decree issued by the Russian president, unfriendly countries must pay for Russian gas in rubles starting April 1. Moscow has signaled that noncompliance would be treated as a breach of obligations and could trigger suspension of existing contracts. The policy move contributes to a broader discourse around how currency choices affect energy trade and the potential consequences for customers and utilities across Europe. The shift toward ruble payments has prompted responses from several energy players who operate under both EU and national sanctions frameworks, influencing decision-making and payment practices. This topic is widely covered in national and regional energy briefings and reflects the ongoing recalibration of energy procurement strategies in response to geopolitical risk. Attribution: statements from the Russian presidency and subsequent official channels.
Earlier in the year, Gazprom announced suspensions of gas supplies to Bulgaria’s Bulgargaz and Poland’s PGNiG due to late ruble payments, illustrating how currency-related payment timing can disrupt delivery schedules. Shortly after, Gasum of Finland faced a similar suspension for the same reason, followed by interruptions to deliveries to Denmark’s Orsted, the Netherlands’ GasTerra, and Shell Energy Europe. These actions highlight how payment currency policies can ripple through regional markets, affecting utilities, traders, and end users who depend on stable gas supplies. Attribution: company announcements and regional energy market reporting.
bypassing Russia’s rules
A Lithuanian portal reported that Aigars Kalvitis, chair of Latvijas Gaze, confirmed the company resumed gas purchases from Russia but paid in euros instead of rubles. Kalvitis stated that the purchases were conducted through an intermediary rather than directly with Gazprom. This development indicates how buyers adapt to sanctions regimes and currency controls while maintaining access to Russian gas through alternative routes or intermediaries. Kalvitis emphasized that current arrangements involve euros and that there are no concerns about the company’s ability to supply its customers. Attribution: Delphi portal interview with Latvijas Gaze leadership and subsequent market reporting.
Since mid-June, Kalvitis noted an uptick in Russian flow, surpassing one terawatt hour, though Latvijas Gaze reported that direct purchases from Gazprom had ceased. He explained that the company now sources gas from another supplier, without naming it, citing business confidentiality. The payment was recorded in euros rather than rubles, underscoring how European buyers adapt to sanctions while maintaining contractual gas flows. Attribution: statements from Latvijas Gaze leadership and market observers.
When pressed on the identity of the alternative supplier, Kalvitis declined to disclose specifics, highlighting that the information is not public. He reiterated that euro payments are in place and that the company remains capable of delivering gas to customers. This exchange reflects the ongoing negotiation between maintaining energy security and complying with international sanctions frameworks. Attribution: direct remarks from Aigars Kalvitis and subsequent industry commentary.
Another official, Edijs Saitsans, Deputy Undersecretary of Latvia’s Ministry of Economy, indicated that paying in rubles was being considered but would violate sanctions imposed on Moscow. The Latvian Saeima has moved to ban Russian gas supplies from the start of the next year, with amendments to the Energy Law advancing to support a broader nuclear power program in the country. These policy steps illustrate how countries are shaping their energy mix and security posture in response to external pressures while pursuing diversification and resilience. Attribution: statements from the Ministry of Economy and parliamentary sources.
Europe’s rejection of gas from Russia
European Commission President Ursula von der Leyen told the Portuguese newspaper Diario de Noticias that the 27 EU member states should voluntarily save gas to ensure energy security during the winter and that using coal temporarily may be necessary for power generation. She argued that Russia deliberately halted deliveries to several member states, prompting a collective readiness for potential further cuts or even a complete suspension. The message centers on solidarity and strategic planning to stabilize energy supply during a period of geopolitical tension. Attribution: remarks from EU leadership reported in European policy media.
Von der Leyen urged a collective effort to reduce gas consumption by about 15 percent, emphasizing that such a target would help build gas reserves ahead of winter. The EU is increasingly turning to more reliable energy partners, including record LNG shipments from the United States and growing imports from Norway, the Gulf regions, Algeria, and the Caspian area. This diversification trend aims to reduce dependency on any single source and to strengthen regional resilience. Attribution: European Commission communications and policy briefings.
She praised the efforts of Portugal and Spain to develop LNG infrastructure that could benefit the entire EU, noting that the Iberian Peninsula could become a hub for LNG imports from Africa and the Americas. Still, she acknowledged the need to improve the currently limited interconnections between the peninsula and the rest of Europe. The text stresses that coal should be a temporary option if necessary, while renewables and cleaner energy alternatives remain preferred. The overarching goal remains a balanced and secure energy mix tailored to Europe’s diverse needs. Attribution: policy discussions and identified infrastructure projects as reported by EU leadership and related energy analyses.