The German company Uniper and the Austrian OMV are going to use accounts in Russian currency, and the Italian company Eni is studying the available options.
Some of Europe's largest energy companies are preparing to use the new payment system for payment for Russian gas in accordance with the requirements of the Kremlin. Critics say it would undermine EU sanctions and could split the union's unity. In addition, the Russian economy will receive billions of euros.
The Financial Times writes that gas distributors in Germany, Austria, Hungary and Slovakia plan to open ruble accounts with Gazprombank in Switzerland to meet Russian demands to pay for supplies in Russian currency. Among those who are going to succumb to Moscow's demands are the two largest importers of Russian gas: Dusseldorf's Uniper and Vienna's OMV. Negotiations between European buyers and Gazprom have intensified as payment day approaches.
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The Italian company Eni, another major customer of Gazprom, is evaluating the available options. The next payment for Russian gas should be made in late May. The Financial Times writes that all these preparatory actions demonstrate the impact of Russia's efforts to turn gas supplies into weapons and undermine the EU's ability to maintain a common front against Moscow. In late March, Vladimir Putin decided that buyers from so-called “unfriendly” countries, which include all EU countries, should open ruble accounts with Gazprombank and pay for gas supplies in Russian currency. Thus, Moscow is trying to neutralize the EU sanctions against the Central Bank of Russia, which were imposed due to the Russian invasion of Ukraine.
Gas importers in Poland and Bulgaria who refused to comply with Kremlin demands lost Russian supplies on Wednesday. European Commission President Ursula von der Leyen has accused Moscow of blackmail. Brussels tried to fight Russian demands. The European Commission has issued a formal technical instruction recognizing that the financial scheme proposed by the Kremlin may be “compatible with sanctions” under certain conditions. Thus, Russia will be able to receive billions of euros for gas sales to support the national currency and economy. According to the Kremlin's scheme, European companies will pay Gazprombank for gas imports in euros so as not to violate sanctions. And the Russian bank, against which no restrictions have been imposed, will, at the request of European importers, convert the amounts paid into rubles, which will be credited to another account opened for EU companies. And from this account, they will then pay Russia for supplies.
European Commission advisers have concluded that any attempt by the EU to impose sanctions on Gazprombank will completely undermine the existing mechanism for paying for Russian gas, leading to a catastrophic shutdown of supplies to Europe. European Commission Vice President Valdis Dombrovskis said that each individual company that has signed an agreement with Gazprom must decide for itself how to implement and interpret these agreements. However, he urged importers to strictly adhere to the provisions of these contracts.
Read also: The Kremlin threatens to cut off gas to other EU countries
“Prices are agreed in euros or dollars. Therefore, you pay certain amounts in euros for specific volumes of gas. “The end of history,” he said.
At the same time, Dombrovskis acknowledged that stopping supplies to Bulgaria and Poland is a challenge.
It is important to maintain the unity of the EU on this issue. And, as President von der Leyen said, we must not be blackmailed, “he added.
OMV says that they have analyzed Gazprom's request for payment methods for compliance with EU sanctions and are working on a solution that will meet the requirements of the imposed restrictions.
“We believe that the changed payment process complies with sanctions laws, so such payments are possible, “said Uniper CFO Tiina Tuomela.
After the EU imposed sanctions on Russia over its invasion of Ukraine, Moscow, represented by Putin, demanded payment rubles from April 1 . Commenting on the possible refusal of the EU to pay for gas supplies in rubles, the Kremlin said: “No payment – no gas.”
Russia supplies gas through pipelines to 23 European countries. Of these, Putin was going to demand payment for gas in rubles only from “unfriendly countries”.
Interestingly, as of April 27 The only country that dared to declare its readiness to pay Russia in rubles was a very friendly Hungary, and even then under a “cunning” scheme, when payment will still be made in euros , but then “Gazprombank” will change the euro in rubles, and this will be credited as payment in rubles.
