The price of natural gas per megawatt-hour in Europe increased by around 13.4% after Russian energy firm Gazprom informed Poland and Bulgaria that it would halt gas supplies to the two countries from Wednesday onwards.

In early trading on the Netherlands-based virtual natural gas trading point (TTF), the price per megawatt-hour in Europe rose to €117 ($124.20) at 09.28 local time (0628 GMT) on Wednesday from €103.20 ($109.60) on Tuesday's closing.

Polish state gas company PGNiG said in a statement that Gazprom informed the company that all gas deliveries would be halted from 08:00 CET (0600 GMT).

Bulgaria’s Energy Ministry similarly confirmed that Gazprom is ceasing supplies to the country.

'The Bulgarian side has fully fulfilled its obligations and has made all payments required under this agreement in a timely manner, strictly and in accordance with its clauses,' the ministry said.

Gazprom officially informed its customers on April 1 of its new payment conditions for Russian gas, stipulating that deliveries done from that date need to be paid in rubles.

By Ebru Sengul Cevrioglu

Anadolu agency

energy@aa.com.tr