(CNN Business) – Russia has cut off natural gas supplies to Poland and Bulgaria because they refused to pay in rubles, increasing tensions with the West substantially.
PGNiG, Poland's state-owned gas company, announced on Tuesday that gas shipments along the Yamal pipeline will be "completely suspended" beginning Wednesday morning.
The statement continued, "On April 26, Gazprom informed PGNiG of its intention to completely halt deliveries under the Yamal contract at the start of the contract day on April 27,."
Natural gas futures in the United States rose 3% on Tuesday as a result of the news.
According to Russian state news agency TASS, which cited Gazprom spokesperson Sergey Kupriyanov, the Russian energy giant did not confirm that the delivery of Russian gas to Poland had been halted.
Kupriyanov, on the other hand, insisted that Poland pay in rubles for Russian gas shipments, a demand that Warsaw has rejected.
According to a statement released by the Bulgarian energy ministry on Tuesday, Gazprom has informed Bulgaria's state-owned gas company Bulgargaz that gas supplies will be cut off beginning Wednesday.
Paying in rubles was inappropriate, according to the energy ministry, and posed "serious dangers" to Bulgaria.
The Bulgarian side "completely fulfilled its responsibilities and made all payments necessary under this contract in a timely, diligent, and in accordance with its provisions," according to the statement.
Alternative natural gas supply arrangements have been made by Bulgarian government agencies.
"At this time, no restrictions on gas usage in Bulgaria have been enforced," the ministry continued.
Last month, Russia issued an ultimatum to "unfriendly" countries, stating that they either begin paying for their energy in rubles on April 1 or face losing essential supplies. However, the gas has not stopped flowing.
Payments for gas provided at the time of the announcement would be due towards the end of April or the beginning of May, according to the Kremlin, which is why Russia didn't shut off the supply of gas to Europe right away.
President Vladimir Putin's high-stakes ultimatum has shocked Europe, which cannot run its economy for long without Russian oil. Moscow has made it plain that it may cut natural gas supplies at some point, maybe to discourage or retaliate to even severe Western sanctions over the Ukraine conflict.
PGNiG stated that it is prepared to get gas from a variety of sources, including gas connections on its western and southern borders, as well as the liquefied natural gas (LNG) terminal in Swinoujscie, Poland's northwest port city.
It also announced that its subsurface gas storage is over 80% full.
"The balance sheet is bolstered by domestic gas production and fuel reserves collected in underground gas storage facilities; the warehouse filling level is currently over 80%, which is much higher than in prior years," it added.
According to the Polish gas provider, all supplies to clients are now being made in accordance with their requirements, and the company is monitoring the situation and preparing for all scenarios.
Despite Russia's suspension of exports, Poland's Climate Minister, Anna Moskwa, stated on Tuesday that there will be no gas shortage in Poland.
"Poland has the necessary gas reserves and sources of supply to ensure our security – we have been effectively independent of Russia for years," she tweeted.
The minister wrote, "There will be no gas scarcity in Polish homes."
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