WARSAW, Poland: Officials in Poland and Bulgaria said Tuesday that Russia is suspending their countries’ natural gas deliveries after they refused to pay for their supplies in Russian rubles.
The governments of the two European Union and NATO members said Russian energy giant Gazprom informed them it was halting the gas supplies starting Wednesday.
The suspensions would be the first since Russian President Vladimir Putin said last month that “unfriendly” foreign buyers would have to pay the state-owned Gazprom in rubles instead of dollars and euros. No country, except Hungary, has agreed to pay in bules.
If Gazprom suspends supplies to other countries, it could cause economic pain to Europe, causing gas prices to rise and possibly leading to rationing. Germany is particularly vulnerable due to its heavy dependence on Russian gas. But cutoffs would also deal a blow to Russia’s own economy.
Poland has been a strong supporter of neighboring Ukraine during the Russian invasion. It is a transit point for weapons the United States and other Western nations have provided Ukraine.
The Polish government confirmed this week that it was sending tanks to Ukraine’s army. On Tuesday, it announced a sanctions list targeting 50 Russian oligarchs and companies, including Gazprom.
Bulgaria, once one of Moscow’s closest allies, has cut many of its old ties with Russia after a new liberal government took the reigns last fall and after Putin’s military invaded Ukraine. It has supported sanctions against Russia and provided humanitarian aid to Ukraine.
Bulgaria has been hesitant to provide military aid to Ukraine, but Prime Minister Kiril Petkov and members of his coalition government are heading to Kyiv on Wednesday for talks with Ukrainian officials about further aid to the country.
Poland’s state gas company, PGNiG, said it was informed by Gazprom that its deliveries through the Yamal-Europe pipeline would stop Wednesday morning.
Later, the Bulgarian Energy Ministry said it was notified that Bulgaria’s supplies of Russian gas via the TurkStream pipeline would cease on Wednesday as well.
Europe imports large amounts of Russian natural gas to heat homes, generate electricity and fuel industry. The imports have continued despite the war in Ukraine.
Around 60 percent of imports are paid in euros, and the rest in dollars. Putin’s demand was apparently intended to help bolster the Russian currency amid the Western sanctions imposed over the war.
European leaders said they would not comply with the rubles requirement, arguing that it violated the terms of contracts and their sanctions against Russia.
The Yamal pipeline carries natural gas from Russia to Poland and Germany, through Belarus. Poland has been receiving some 9 billion cubic meters of Russian gas annually, fulfilling some 45 percent of the country’s needs.
Poland’s gas company said it was considering legal action over the Russian payment demand. But Polish Climate Minister Anna Moskwa stressed that Poland was prepared for such a situation after working for years to reduce its reliance on Russian energy sources.
Several years ago it opened its first terminal for liquefied natural gas, or LNG, in Swinoujscie, on the Baltic Sea coast, while later this year a pipeline bringing gas from Norway, called “Baltic Pipe,” is to become operational.
“There will be no shortage of gas in Polish homes,” Moskwa tweeted.
Bulgaria said the new gas payment system created considerable risks for the country and that it was working with state gas companies to find alternative sources to replace the supplies it gets from Russia. .
But the Bulgarian government said no restrictions on domestic gas consumption would be imposed for now even though the Balkan country of 6.5 million meets over 90 percent of its gas needs with Russian imports.
In Washington, White House press secretary Jen Psaki said the UShad been preparing for such a move by Russia “in anticipation of the possibility of this happening or a decrease in what they’re providing.”
“Some of that has been asking some countries in Asia who have excess supply to provide that to Europe. We’ve done that in some cases, and it’s been an ongoing effort,” Psaki said.
Russia suspending gas supplies to Poland, Bulgaria
https://arab.news/2qkgy
Russia suspending gas supplies to Poland, Bulgaria
- Poland has been a strong supporter of neighboring Ukraine during the Russian invasion
SABIC sells European petrochemicals, engineering plastics units in $950m portfolio restructuring
RIYADH: Saudi Basic Industries Corp. is selling two overseas businesses for a combined $950 million as the world’s biggest petrochemicals maker continues to streamline its portfolio and redeploy capital toward higher-return segments.
The Riyadh-based company agreed to sell its European petrochemicals business to investment firm AEQUITA for $500 million and its engineering thermoplastics operations in the Americas and Europe to turnaround specialist Mutares for $450 million, SABIC said in a release.
The plastics deal includes an earn-out linked to future cash flow and a potential resale.
The transactions are part of SABIC’s portfolio optimization program launched in 2022, which has already seen divestments including Functional Forms, Hadeed and Alba. The company aims to sharpen its focus, improve returns, and free up capital for higher-growth opportunities.
Abdulrahman Al-Fageeh, CEO of SABIC, said: “This strategic approach allows us to actively reshape our portfolio and sharpen our focus on areas where SABIC has clear and sustainable competitive advantages in a rapidly changing landscape.”
He added: “I am pleased that both AEQUITA and Mutares will work with us in the future to ensure that we continue to serve our global customers in a seamless manner.”
The European petrochemicals business produces ethylene, propylene, various grades of polyethylene, polypropylene and polymer compounds. Its manufacturing footprint includes sites in the UK, the Netherlands, Germany and Belgium.
The engineering thermoplastics business in the Americas and Europe produces polycarbonate, polybutylene terephthalate and acrylonitrile butadiene styrene. Its facilities are located in the US, Mexico, Brazil, Spain and the Netherlands.
“The Board endeavored to achieve these transactions, which represent a significant milestone in the execution of our strategy to further optimize our portfolio and maximize shareholder value by enhancing the Company’s cash generation capacity and achieving the highest possible return on our global businesses,” said Khalid Al-Dabbagh, chairman of the board of directors of SABIC.
Chief Financial Officer Salah Al-Hareky said the transactions demonstrate a “disciplined approach” to capital allocation and active portfolio management, aimed at improving return on capital employed and free cash flow.
Despite the divestments, SABIC said it will maintain strategic market access through exports to Europe and the Americas, while preserving its focus on technology, innovation and customer service.
Both buyers have committed to ensuring business continuity, retaining workforce expertise and maintaining high safety and customer service standards during the transition.
Axel Geuer, president and co-CEO of AEQUITA, said: “This transaction represents a further step in the expansion of our European chemicals platform.”
He added: “The assets are highly synergistic with the olefins and polyolefins business we recently acquired from LYB; with complementary markets, infrastructure and operational capabilities, we see substantial potential to realize synergies and drive operational improvements across both businesses.”
Geuer, noted that under AEQUITA’s active ownership model, the focus will be on supporting the teams on the ground, ensuring a seamless integration, and building a scaled, competitive platform positioned for long-term, sustainable value creation.
Robin Laik, co-founder and CEO of MUTARES, said: “The Engineering Thermoplastics (ETP) business in the Americas and Europe has a highly skilled workforce and strong customer relationships.”
He added: “Under focused ownership, our priority is to ensure continuity, support employees through the transition, and unlock the full potential of our asset base as a standalone ETP platform.”
The deals are subject to customary closing conditions, regulatory approvals, and, where applicable, employee consultation processes.










