Gazprom, the state-owned energy giant, exported an average of 387 million cubic meters of natural gas a day to countries outside the former Soviet Union, down 22 percent from March. European countries are benefiting from reduced liquefied natural gas amid declining demand from Asia, including the impact of lockdowns in China, as the continent prepares to reduce its dependence on Russian energy. Moscow on Wednesday threatened to cut off supplies to Poland and Bulgaria if they did not comply with President Vladimir Putin’s request for ruble payments. Gazprom said Sunday that it continues to comply with contractual obligations. Ole Hvalbye, a commodity analyst at SEB, said Poland and Bulgaria were well prepared for the ban, with plans already to wean themselves off Russian fuel. “While the negative effect on Poland and Bulgaria is obviously manageable, the cessation of Russian exports underscores Russia’s lead,” he said. In the first four months of the year, it shipped 50.1 billion cubic meters, down 27% from a year earlier. Procurement in China through the Power of Siberia connection increased by 60% year-on-year as Beijing took advantage of reduced costs. Rising energy costs have massively increased the value of its production, which means that Europe actually pays Moscow about 1 billion euros a day.
