Remember Lithuania that banned Russian oil & gas, they have secured 2030 contract supply with Gazprom

Baltic countries rely heavily on Russian gas. Remember that on Friday April 1st  2022, Lithuania announced that it has completely stopped the importation of Russian gas.

Lithuania’s President, Gitanas Nausėda also made a tweet earlier stating, “From this moment on— no more Russian gas in Lithuania.

“Years ago my country made decisions that today allow us with no pain to break energy ties with the aggressor. If we can do it, the rest of Europe can do it too!”

But, it seems things are not quite moving as planned according to reports from the Baltic’s. Lithuania is reportedly feeling the jitters over its decision to abandon Russian gas. This has caused the country to turn around and arrange a contract with Russia’s Gazprom for supply up to 2030. Read the excepts here –

JSC “Latvijas Gāze” has entered into a valid long-term agreement on the supply of natural gas until 2030 with PJSC “Gazprom”, which provides for settlements for natural gas in euros.

According to the changes in the legislation of the Russian Federation, starting from April 1, 2022, settlements for natural gas supplies made after April 1, 2022 in accordance with the foreign trade agreements of PJSC “Gazprom” for the supply of natural gas abroad (to a number of countries) shall be made only in Russian rubles.

Assessing the compliance of the said change of the settlement procedure with the previously established sanction regime, the first impression is that such settlement procedure – in Russian rubles – does not formally violate the sanction regime and is possible. At present, Latvijas Gāze continues to analyze in depth the change in the proposed settlement method both from the legal point of view and from the point of view of the Group’s business interests.

JSC “Latvijas Gāze” Chairman of the Board Aigars Kalvītis “we would like to emphasize that the amount of natural gas reserves of JSC Latvijas Gāze in the natural gas storage facility is sufficient to fulfill its contractual obligations to households and other customers by supplying the natural gas pumped into the storage facility. The decision not to pump gas through pipelines in April was taken in view of the historically high natural gas prices in April, which would lead to disproportionately high natural gas sales prices to our customers and make such offers uncompetitive.”

As before – JSC “Latvijas Gāze” continues to supply natural gas to households and other customers in accordance with the obligations of the concluded contracts and within the terms stipulated in the contract and is fully prepared to do so below.

On behalf of the JSC “Latvijas Gāze”,
Chairman of the Board
Aigars Kalvītis

This shows that there really may be no way out of the gas hurdle for now.

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