Russia to Cut Gas to Poland, Bulgaria Until Pay Demands Met

  • Gas prices surge 20% before easing back to trade 5% higher
  • EU calls the move ‘blackmail’ and calls meeting to respond
WATCH: Gazprom says it will keep supplies turned off until Poland and Bulgaria agree to Moscow’s demand to pay for the crucial fuel in rubles.Source: Bloomberg
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Russia halted gas flows to Poland and Bulgaria in a major escalation, and said it will keep supplies switched off until the two countries agree to Moscow’s demands to pay for the fuel in rubles.

European gas prices surged 20% on Russia’s sudden move to turn its vast energy resources into a weapon against Ukraine’s allies. But prices later eased as it emerged that some European companies have taken steps to accede to Moscow’s demands, reducing the risk of a broader cutoff.