EU Commission
EU: Russian gas affordable without violating sanctions
A Russian decree stipulates that customers in Western countries must have an account with Gazprombank. Photo: Maksim Konstantinov/SOPA Images via ZUMA Press Wire/dpa
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European Union companies can continue to pay for Russian gas supplies without violating sanctions against Moscow. This has now been confirmed by the EU Commission.
According to the EU Commission, EU companies should be able to continue paying for Russian gas without violating European sanctions against Moscow.
A spokesman for the authority said with regard to the Russian decree, which provides for ruble payments for gas supplies to the West: “We have carefully analyzed the new decree and are in contact with the authorities of the member states and the energy companies concerned.” Already on Thursday, the EU countries were sent a guide with a view to gas imports.
It states that according to the Russian decree it still seems possible to pay for Russian gas without violating EU law. “EU companies can ask their Russian business partners to fulfill their contractual obligations in the same way as before the decree was passed, ie by depositing the amount due in euros or dollars.” The Russian decree does not exclude a payment method that is in line with EU sanctions. However, the procedure for exceptions to the requirements of the decree is still unclear.
Decree: Account with Gazprombank required
In principle, the decree stipulates that customers in western countries and those in what Moscow calls “unfriendly” countries must have an account with Gazprombank. Then they can pay for the gas in euros or dollars as before. The bank converts the amount into rubles, buys the currency on the Moscow Stock Exchange, and then transfers the money to Gazprom. The EU Commission’s paper states that the entire process is in the hands of the Russian authorities. The Russian central bank could also be involved. This is prohibited under EU law. However, EU sanctions would not prohibit opening an account with Gazprombank.
Companies that make euro transfers to accounts at Gazprombank in the future could make a declaration beforehand that they consider their contractual obligations to be fulfilled, the EU Commission writes in its guidelines. It is advisable to get confirmation from the Russian side that this procedure is possible under the provisions of the decree.
The EU Commission spokesman said that companies should not give in to the Russian demand. The position of the EU and also the G7 is that treaties must be respected. 97 percent of the relevant contracts expressly provide for payment in euros or dollars.