Ørsted said it has prepared for a potential scenario in which Gazprom, the Russian state-owned gas company, cuts supplies to customers in Europe as a reaction to a refusal by companies to pay in the Russian currency.

Alternative supplies could be purchased on the European market in such a situation, Ørsted said in a statement issued on Monday.

Following an earlier demand by Gazprom that gas supplies be paid for in rubles, Ørsted said it would not comply with the request. The Russian company gave a final deadline of the end of May for a decision on the matter, but Ørsted has not changed its position, it said.

“There is therefore a risk that Gazprom Export will stop supplying gas to Ørsted,” the Danish energy company said in the statement.

“We believe that would be a breach of Gazprom Export’s obligations under contract,” it added.

Ørsted would be required to find other suppliers should the supply from Gazprom be broken off.

The company said it was in dialogue with Danish authorities to draw up a plan for a potential shortage of gas for customers in Denmark.

Even if it is required to find new suppliers, Ørsted said it does not expect a resultant impact on costs.

“A potential stop to gas supplies from Gazprom Export has no impact on Orsted’s expectations for the financial year 2022 or on the announced investment level for 2022, and it does not affect our strategic ambitions or long-term financial expectations,” the company said in the statement.

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