Shell, Orsted to lose Russian gas from June 1 over refusal to pay under new system

(Interfax) - Shell (SPB: RDS.A) and Denmark's Orsted have lost access to Russian gas supplies over their refusal to pay for them under the new rules, Gazprom Export said.

"Danish company Orsted Salg & Service A/S has notified LLC Gazprom Export that it does not intend to pay for gas in rubles in accordance with the Russian presidential executive order No. 172, dated March 31, 2022 and in accordance with the new arrangement proposed by Gazprom Export. As of the end of the working day on May 31, the deadline stipulated by the contract, Gazprom Export had not received payment from Orsted for gas supplied in April. Accordingly, Gazprom Export has notified Orsted that gas supplies will be suspended on June 1, 2022 and until payment is remitted in the manner prescribed by the aforementioned executive order," the Russian company said.

In addition, Shell Energy Europe Limited has notified LLC Gazprom Export that it does not intend to pay for gas in rubles in accordance with the Russian presidential executive order No. 172, dated March 31, 2022 and in accordance with the new arrangement proposed by Gazprom Export.

The contract is for the supply of up to 1.2 billion cubic meters of gas per year.

"As of the end of the working day on May 31, the deadline stipulated by the contract, Gazprom Export had not received payment from Shell Energy Europe Limited for gas supplied in April. Accordingly, Gazprom Export has notified Shell Energy Europe Limited that gas supplies will be suspended on June 1, 2022 and until payment is remitted in the manner prescribed by the aforementioned executive order," the Russian company said."