After Putin’s ruble decree
When gas transfer is restricted according to the EU
05/02/2022 10:57 pm
The May bill for Russian gas is due. Some countries are seeking clarification from the EU Commission on how to arrange for their transfer to Gazprom without violating sanctions. Kremlin boss Putin has been demanding the ruble since April and threatens to halt deliveries otherwise.
The EU Commission is developing more precise guidelines on how EU countries can continue to pay for Russian gas supplies without violating sanctions against Moscow. “Many European energy companies have to make the next payment to Gazprom in mid-May and try to better understand what they need to do,” EU Energy Commissioner Kadri Simsson said after a special meeting of EU responsible ministers. Needed.” “EU countries and companies should be under no illusions that they can rely on the goodwill of Gazprom and the Russian authorities in this area.”
Russia halted gas supplies to Poland and Bulgaria last Wednesday after two EU countries failed to agree to a new ruble payment system that Russia was demanding. To avoid similar moves in their own countries, EU states have sought further guidance.
Simsson stressed that energy security in the EU is not at risk at this time. Memory is over 32 percent full. But you have to be prepared for potential supply disruptions, Simson said.
Companies are not allowed to pay in rubles
The EU Commission had already made it clear that paying gas delivery in rubles demanded by Russia would be a violation of sanctions. During the exchange of money in a separate account in rubles, the money is in the hands of the Russian central bank, approved by the European Union. The EU Commission does not believe that sanctions have been violated as long as companies continue to make payments in euros and the payment is deemed to have been made prior to the payment in exchange for the ruble. About 97 percent of gas contracts in the European Union are in dollars or euros.
In late March, the head of the Kremlin, Vladimir Putin, called on Western countries to open accounts with Gazprombank in Russia effective April 1 to pay for Russian gas. Otherwise, delivery to “unfriendly” countries will be stopped. According to a decree signed by Putin, payments can still be credited to a Russian account in euros or dollars. Gazprombank converts money into rubles and transfers the amount in Russian currency to Gazprom. Delivery will be stopped if payment is not made, Putin had threatened.
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