Several European gas suppliers are confident that they have found a payment mechanism for Russian gas that is acceptable to both the EU and Moscow. Italian energy group Eni said on Tuesday that the company would open an account in euros and one in rubles at Gazprombank “in the coming days”. Eni can pay in euros, the Russian bank then converts it into rubles.
Russian President Vladimir Putin had ordered gas deliveries to be paid in rubles. The Europeans see this as a later amendment to the current treaties and reject it. Companies that meet Russian requirements risk being prosecuted for violating EU sanctions. According to Eni, the Russian authorities have confirmed that “billing and payment in euros will continue to take place” and “an operator of the Moscow Stock Exchange will carry out the conversion into rubles within 48 hours without the intervention of the Central Bank of Russia”. Initially, Moscow envisioned a conversion mechanism through the central bank, but this would clearly violate EU sanctions.
Opening an account is a violation of EU sanctions
Another Kremlin decree then introduced a new two-step payment procedure, where first deposits in euros or dollars are made into one Gazprombank account and then converted into rubles into a second account at the same institution. On Tuesday, however, an EU commission spokesman confirmed that opening a ruble account with Gazprombank already violates EU sanctions. Brussels could start EU infringement proceedings against Member States in case of default.
40 percent of Italian gas imports come from Russia
When deciding to adapt to the new payment system through Gazprombank, Eni referred to agreements with the Italian authorities. It’s about avoiding “a potential disruption to the gas supply,” the company said. The Italian state owns more than 30 percent of Eni’s shares. Italy covers 95 percent of its gas needs with imports, of which about 40 percent came from Russia in 2021. Germany is in a similar situation. Economic Affairs Minister Robert Habeck (Greens) had assured Monday that the EU requirements for gas payments would be met. However, he remained vague about the details. For example, it was initially unclear whether German importers would open ruble accounts at Gazprombank.
Only afterwards convert to rubles
However, the head of EnBW, Frank Mastiaux, told the “Süddeutsche Zeitung” (Wednesday edition) that the new “mechanism is in place”. EnBW also wants to pay in euros “in accordance with the sanctions”, the conversion to rubles at Gazprombank will take place “then”. “We did a test with a positive result.” “We’ll see” how long the mechanism works.
French energy group Engie has also reached an agreement with Gazprom on a “solution that appears to be in line with both Gazprom’s expectations and our own expectations” regarding “currency risks” and “what we mean by EU sanctions,” Engie said. boss Catherine MacGregor on Tuesday. Austria is also dependent on gas imports from Russia. The oil and gas company OMV only said on Monday: “We are working on a sanction-compliant solution.”
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
