PARIS, 31 Aug – PRIME. The suspension of gas supplies by Gazprom to the French company Engie was the result of trade disputes, AFP reported on Wednesday, citing an industry source.
On Tuesday, Gazprom decided to suspend supplies of the French Engie due to non-payment of July gas in full.
“These are trade disputes related primarily to differences in interpretations,” the agency’s source said.
According to him, when deciding to reduce gas supplies to the French company earlier in August, Gazprom cited “force majeure circumstances” – a reason that exempts the party from liability in the event of exceptional events.
The French side contested the occurrence of “force majeure” and deducted part of the losses, which, according to its calculations, it suffered due to the reduction in supplies, from its payment to the Russian company.
“At this stage, this is a fairly standard trade dispute about what is or is not a force majeure event. Obviously, in the context of a difficult geopolitical situation, this standard disagreement turned out to be difficult to resolve,” the agency’s source said.
The Russian company explained in its statement that as of the end of the business day on August 30, Gazprom Export LLC had not received full payments for the gas supplied by Engie in July under existing contracts. According to the decree of the President of the Russian Federation of March 31, 2022, further gas supplies to a foreign buyer are prohibited if the payment for fuel has not been made in full within the contractual payment period.