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    Russia resumes gas flow to Latvia after July 30 halt

Summary

Gazprom had cited a contractual violation, and the reason why supplies have now been resumed is unclear.

by: NGW

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Russia resumes gas flow to Latvia after July 30 halt

Russia resumed pumping gas into Latvia via the Korneti entry point on August 5 after suspending them on July 30 when Gazprom claimed an unspecified contractual violation, data released by Latvian gas grid operator Conexus Grid shows.

Gazprom had said in a terse statement on July 30 that it was halting supply to Latvia "due to a violation of the conditions established for gas withdrawal." The Russian company did not say whether the violation related to what currency Latvia was using to pay for the gas. But Latvian energy firm Latvijas Gaze had said on July 29 it was purchasing gas from Russia in euros rather than rubles.

Gazprom has cut off deliveries to a number of other customers in Europe in recent months, citing their failure to comply with a Kremlin decree issued in March that required buyers of gas in so-called "unfriendly countries" to pay for their gas in rubles.

Neither the Russian nor Latvian side have specified why supplies resumed. Most of Gazprom's European customers complied with the Kremlin's request and now pay in rubles. Their foreign currency-denominated payments are sent to accounts in their name at Gazprombank, where the bills are converted into rubles for transfer to Gazprom.