Shell said on Tuesday it has not agreed to set up a ruble account under new payment terms by Russian gas giant Gazprom to continue supplying Europe.

"Shell has not agreed to new payment terms set out by Gazprom, including the creation of K (rubles) accounts," it said in a statement. "We will work to continue supplying our customers in Europe through our diverse portfolio of gas supply."

Earlier, Gazprom said it would cut off gas flows to Denmark's Orsted and to Shell for its contract to supply gas to Germany, after both companies failed to make payments in rubles.