Danish energy company Ørsted announced on Tuesday that delivery of Russian gas to Denmark would be suspended from June 1 at 6 a.m. local time, after Ørsted refused to settle payment in roubles.
“Since there is no gas pipeline coming directly from Russia to Denmark, Russia will not be able to directly suspend the gas supply to Denmark and therefore it will be possible for Denmark to supply gas. However, this assumes that gas for Denmark needs to be more widely purchased on European gas markets," Ørsted said in a statement.
Russia has announced that it will only accept payment for natural gas deliveries in its national currency, requiring buyers to open bank accounts in rubles or risk having its deliveries suspended.
The move comes in response to a series of international sanctions that hit Moscow after Russia invaded Ukraine on Feb. 24, including freezing foreign currency assets held abroad.
Gas represents 18% of the energy consumed each year in Denmark. Domestic production accounted for three-quarters of the gas consumed in 2019. Russia is one of the main sources of natural gas imports, according to the Danish Energy Agency.