Russia's Gazprom says it's cutting off some natural gas to Germany after Shell refused to pay for it in rubles

Shell supplies fuel to Germany, which is Europe's largest economy, and is about to be stopped by Russian energy giant Gazprom. Shell refused to pay in rubles.

On the same day it cut off natural-gas supplies to the Netherlands, Gazprom made an announcement.

Russian President Vladimir Putin demanded in a March 31 decree that natural-gas payments be made in rubles, which would require opening a euro and ruble account with Gazprombank.

Shell Energy Europe does not intend to make payments under the contract for the supply of gas to Germany in rubles.

As of the end of the business day on May 31, the payment deadline stipulated by the contract, the Russian company wrote.

Until payment is made in rubles, the Russian company continued, the gas supplies will be suspended from June 1, 2022.

Shell gets up to 1.2 billion cubic meters of natural gas a year from Gazprom. According to the economy ministry, Germany consumes 2.5% of the 95 billion cubic meters of natural gas each year.

Uniper and DWE have paid for Russian fuel under Moscow's new payment plan, despite Shell refusing to pay in rubles.

Uniper is the largest importer of Russian gas in Germany. It depends on Russia for more than half of its natural-gas needs. According to the media outlet, the German energy giant is the country's largest gas import and storage company.

Potential for a 'significant recession'

If supplies of Russian natural gas and oil are cut off, Germany could fall into a significant recession. In the first quarter of 2022, Russian gas accounted for 40% of Germany's gas imports.

Germany's economy ministry did not respond to Insider's request for comment immediately. A German government spokesman told CNN that it was monitoring the situation very closely.

Shell did not immediately respond to Insider's request for comment but said it had not agreed to new payment terms set out by Gazprom.

We will work to continue supplying our customers in Europe through our diverse portfolio of gas supply, according to Shell.

On Tuesday, Gazprom said it has stopped gas supplies to GasTerra due to the Dutch trader&s failure to pay in rubles.

Orsted is warning about a cut in gas supply from Gazprom as it is refusing to pay in rubles. The ruble payment was due on Tuesday.

Poland, Bulgaria, and other countries have refused to pay in Russian currency and have had their gas supply cut off.