AFP: Gazprom suspends Engie deliveries due to trade disputes

“Gazprom” has suspended gas supplies to the French company Engie due to trade disputes, AFP reports, citing an industry source.

“These are trade disputes connected, first of all, with disagreements in interpretations,” the agency’s interlocutor said.

According to him, when deciding to cut gas supplies to the French company earlier in August, “Gazprom” referred to force majeure circumstances – a reason that exempts a party from liability in the event of exceptional events.

The French side, in turn, did not agree with the fact of force majeure. “Obviously, in the context of a complex geopolitical situation, this standard disagreement has proved difficult to resolve,” he added.

It became known yesterday that a complete suspension will take effect from September 1, 2022 until Gazprom receives money for the supplied gas. The Russian monopolist refers to the Presidential Decree of March 31, 2022 “On the Special Procedure for the Fulfillment of Obligations by Foreign Buyers to Russian Natural Gas Suppliers”, which prohibits the supply of gas to foreign buyers if payment is not made within the time period established by the contract.

Bloomberg previously also reported that “Gazprom” notified Engie of a reduction in gas supplies due to disagreements on some contracts. Engie noted that they have provided all the necessary volumes of gas for the company itself and its customers, and have also taken a number of measures that will help reduce the financial or physical consequences of a possible cessation of gas supplies from Gazprom. In addition, Engie noted that “Gazprom” and has already significantly reduced gas supplies after the start of a special operation in Ukraine.

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