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Gazprom suspends deliveries to France Engie due to non-payment

By Al Mayadeen English
Source: Agencies
30 Aug 2022 23:41
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France's missing out on a July payment cost it suspension of deliveries.

France's Engie logo (Bloomberg)

Gazprom decided to suspend supplies to French energy company Engie, due to non-payment for July in full, according to Gazprom on Tuesday.

Earlier on Tuesday, Engie said that Gazprom had notified it that gas supplies would be suspended from August 30 onwards due to disagreements over some contracts.

According to a decree signed by Russian President Vladimir Putin on March 31, 2022, gas supply exports are prohibited if payment is not paid in full within the contractual payment period.

"In this regard, Gazprom Export has notified Engie of a complete suspension of gas supplies starting from September 1, 2022, until the receipt of funds for the supplied gas in full," Gazprom concluded.

France faces energy production crisis, needs to restart nuclear plants

Due to the escalating energy crisis in Europe, France will desperately need to restart its nuclear reactors, which were shut down previously, to avoid electricity shortages in winter, as announced by Prime Minister Elisabeth Borne on Monday.

Borne stressed that if there is no immediate alternative to gas supplies from Russia, this measure is necessary.

On August 25, EDF, a French energy company, launched 4 out of 12 nuclear reactors that were previously shut down for maintenance over corrosion which was detected in May by the French Nuclear Safety Authority.

As Europe struggles with unaffordable energy prices, it is reported that 32 out of 56 French nuclear reactors remain dormant for different reasons.

France is facing a crisis in energy production, described as "unprecedently difficult" in late July by government spokesperson Olivier Veran. France has taken rationing measures, such as banning illumination and air conditioners in stores at night time.