Russian state gas company Gazprom has tried to reassure European customers that they can still buy gas without violating sanctions against Russia over its invasion of Ukraine. This is according to a letter from Gazprom to customers, which was seen by Bloomberg news agency.
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In the letter, Gazprom writes that a new Kremlin decree last week “clarifies” the procedure surrounding a payment in rubles. Moscow had previously asked companies to pay in rubles, in order to support its own currency. The European Union does not want this, because it is trying to hit the Russian economy with the sanctions. Poland and Bulgaria have already stopped receiving gas from the Russians because they refused to pay in rubles. For other countries, the payment deadline is later this month.
Payment in euros
In order to buy Russian gas, customers have to open two accounts with Gazprombank, one in euros and one in rubles. After that, the euro payments are converted into rubles by the Russian central bank. That transaction violates sanctions against Russia. The EU has advised companies to pay in euros and then get confirmation that the euros have arrived and leave it at that.
New decree
Under the new decree, the payment of gas in foreign currency will be exchanged for rubles through bank accounts that run through Russia’s National Clearing Center, the organization that deals with, among other things, banking transactions. Gazprom writes in the letter that the decree should provide transparency in the cash flows of foreign buyers of Russian gas, eliminating the possibility of third parties being involved in the transactions. The procedure in the decree does not appear to apply to the Russian central bank, which is subject to sanctions.
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It is not yet clear whether the new decree will allay the EU’s concerns. Brussels did not want to respond to the decree on Saturday, Gazprom was not yet directly accessible.
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