OGZPY PJSC Gazprom (PK)

By Dominic Chopping

Danish renewable-energy company Orsted AS said Monday that it continues to reject demands from Gazprom Export to pay for gas supplies in Russian rubles.

"We have no legal obligation under the contract to do so, and we have repeatedly informed Gazprom Export that we will not do so," the company said.

The payment deadline is Tuesday, and Orsted said it will continue to pay in euros which means there is a risk that Gazprom Export will stop supplying gas to Orsted.

Russia is unable to directly cut off gas supplies to Denmark as there is no direct gas pipeline between the countries, so it would therefore still be possible for Denmark to get gas by increasing purchases on the European gas market, Orsted said.

Orsted said it has been preparing for this scenario by filling its storage facilities, so a potential halt of gas supplies by Gazprom Export doesn't change its full-year financial outlook, expected investment level, or long-term financial guidance.

The company has previously said it will donate any 2022 net profit from the Gazprom Export contract to humanitarian aid in Ukraine and has ceased all sourcing of coal and biomass from Russia, has made sure that none of its direct suppliers for the build-out of renewable energy are Russian, and said it won't enter into new contracts with Gazprom.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

May 30, 2022 08:26 ET (12:26 GMT)

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