Germany’s Gas Supply Gets Cut-off on President Putin’s Order that Gazprom Cease Operations Due to Western Sanctions
(Photo : JOHN MACDOUGALL/AFP via Getty Images)
Germany’s gas supply gets stopped by Gazprom via the Nord Stream 2 gas pipeline; its a worst scenario that could happen due to US sanction pressures.

Germany's gas supply drops to zero as Gazprom shuts the taps after the warning by the Kremlin. Berlin is left scrambling as their contracts are annulled due to the crisis in Ukraine and how Russian President Vladimir Putin called countries unfriendly due to sanctions.

German Chancellor Olaf Scholz has sought to find a middle ground with Moscow but ended up as the first block member as first getting cut off from Russian natural gas.

Russia Cuts Gas Supply to Germany 

German leaders need to keep the gas tap on for the 40 percent of its natural gas needs; they were initially hesitant by joining other western countries in sanctioning Russia due to the Ukraine incursion, reported Express UK.

Berlin is tied into the Nord Stream 2 Baltic gas pipe, which should pump in twice as much natural gas directly.

The Russian gas provider pulled out of the deal indicated it's not part of Gazprom Germania anymore, and other firms like Gazprom Marketing & Trading Ltd.

Katja Yafimava, an expert in Energy Studies from Oxford University, mentioned these statements in Reuters. She said that Gazprom is opting to end as a leading provider for the gas market in Europe, where it has been a longtime player. After what happened to its business in the wake of the Ukraine incursion, it pulled out.

Gazprom knows how the hostile political and regulatory environment will worsen in Europe. Hence, it gathers and consolidates, doing all the business in St Petersburg with the political support of the Russian government.

Germany's gas supply is linked with Moscow, and Berlin became complicated with the decree concerning the payment of natural gas supplies.

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President Vladimir Putin approved a decree that all gas buyers pay in Rubles; most notably, the US and the European Union states called unfriendly.

Putin's Demands

Last Thursday, the decree was signed by Putin, which was against nations opposed to Russia; the shift of payment from Euros and Dollars to Rubles is the currency for payment, cited Nikkei Asia.

In a broadcasted high-level government meeting, opening ruble accounts with Russian banks is necessary. Once the special accounts did, it will be where gas payments are forwarded but must be done before April 1.

Putin added that if the payments are not yet done, it violates the buyers' contract. What happens next is to the buyers what consequences are to follow. This move was alleged to have been done to consolidate the ruble. Both Berlin and Paris said that the Russian leaders commanded to pay in rubles, especially for foreign customers.

Germany's Economy Minister, Robert Habeck, made it clear how the suspension of Russian energy supplies to Europe will have a backup plan. Blackmailing by Putin, he added, is not acceptable.

Remarks by French Finance Minister Bruno Le Maire made it clear that Paris and Berlin will not justify the unwanted demand; if Gazprom stops all contracts.

Ironically, despite the sanction of Russian Energy by Washington, the EU did not allow stoppage of natural gas and oil deliveries.

All payments via a Gazprombank account or 'K account' that converts foreign currency to rubles to complete gas transactions only. The west claims that sanctions are biting.

Gazprom shutting down Germany's gas supply comes as the Kremlin pushes back and uses energy to strangle the bloc.

Related Article: Vladimir Putin Threatens Zero Gas Supply to Unfriendly Nations If Not Paid in Roubles