The Hague asks for a temporary exemption from sanctions against Russia over gas

The Hague, like the rest of the EU, must terminate contracts with Russian companies by October 10 (in this case, with Gazprom, which supplies it with gas). However, the tenders were unsuccessful and the new supplier was not found. max-width: 320px) and (-webkit-min-device-pixel-ratio: 2), (max-width: 320px) and (min-resolution: 192dpi)” >

The Hague will ask to temporarily exclude the city from European sanctions against Russia, as it cannot yet find a replacement for the gas supplier, which is now Gazprom, Reuters writes, citing a letter from municipality member Saskia Bruyns city ​​council.

Under the sanctions regime, the authorities must terminate all existing contracts with Russian companies no later than October 10. In search of a new fuel supplier, The Hague held two tenders— in June and July— however, it was unable to attract any bids.

“We will ask for an exception for the current agreement [with Gazprom] until January 1, 2023, in order to guarantee the security of supplies and facilitate negotiations,” she wrote.

Bruins also noted that personal negotiations with potential suppliers may be effective, but it will most likely not be possible to resolve the situation before October 10. At the same time, she acknowledged that any new contract, which will enter into force on January 1, will be significantly more expensive than the current agreement with Gazprom.

The municipality member expressed confidence that the delay will be granted, as The Hague, according to her, complied with the condition of holding tenders on time.

At the end of March, The Hague began searching for a new gas supplier, assuming that this transition will take place in 2023, The Hague Online wrote. However, due to new EU sanctions, the city has accelerated this process. Bruins spoke about the fact that the new contract would be less profitable due to the rising cost of gas back in May.

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Against the background of anti-Russian sanctions, the cost of gas in Europe began to grow. In summer, the situation was complicated by increased demand for electricity due to hot weather, as well as reduced energy production at European hydroelectric power plants due to lower water levels in rivers. Added to these factors was a decrease in the volume of gas pumped through Nord Stream. due to the decommissioning of gas pumping units.

As a result, on August 22, the exchange price of gas exceeded $3,000 per 1,000 cubic meters for the first time since March 8. Two days later, the price of the September futures crossed the $3,100 mark, and on August 25— at $3300.

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