Gazprom claims Engie failed to pay for gas in July

France's Engie will have its Russian gas supply suspended on September 1 because it failed to pay in full for its deliveries in July, Gazprom claimed in a statement on its Telegram channel.

Engie reported on August 30 that it had been informed by Gazprom that supply would be reduced from the start of September. In its statement, Gazprom said it had notified its French customer of the suspension after the latter failed to pay in full for July deliveries by the close of business on August 30. Supplies will not be resumed until the bill is settled, the Russian company said.

The announcement coincides with the complete closure on August 31 of the Nord Stream 1 pipeline, disrupting supply to a number of European countries, with Germany hardest hit.

Gazprom said it had ceased supply as per a Kremlin decree on March 31, which required that the company's customers settle their bills sooner or risk getting cut off. That decree also stated that the company's customers in so-called "unfriendly" states must pay for their supplies in rubles, at accounts at Gazprombank.

France's energy crisis has been exacerbated by an unusually number of outages at the country's ageing nuclear reactors. With its gas storage facilities now more than 90% full, Engie said on August 29 that the country should have enough fuel to copy in winter if temperatures are averaged, but cold snaps could make the situation more difficult. 

French president Emmanuel Macron has ordered a defence council meeting on September 2 to discuss measures to mitigate the energy crisis this winter, viewing the issue as a matter of national security. On August 29, French prime minister Elisabeth Borne urged businesses to cut energy use or face potential rationing this winter. But while households have also been advised to curb consumption, the government has frozen their gas prices to prevent their energy bills rising.