Gazprom has said it has suspended gas supplies to ENGIE due to “failure to pay for July supplies in full”.

Earlier this week, ENGIE said it was informed by Gazprom of a reduction in gas deliveries due to a “disagreement between the parties on the application of some contracts”.

In a brief statement, Gazprom said: “As of the close of business on August 30, Gazprom Export did not receive the full payments for the gas that had been supplied to France’s ENGIE in July under the existing contracts.

“Pursuant to Executive Order of the President of the Russian Federation dated March 31, 2022, further supplies of natural gas to a foreign buyer shall be forbidden if the buyer fails to make payment in full within the timeframes indicated in the corresponding contract.”

ENGIE had previously stated that deliveries from Gazprom decreased substantially since the beginning of the war in Ukraine, with recent monthly supply of 1.5TWh, which compares to ENGIE’s total annual supplies in Europe above 400TWh.

ELN approached ENGIE for comment.