Half of Gazprom’s Clients Complied with Ruble Payment Requirement

According to the Russian Deputy Prime Minister Alexander Novak, the Russian gas company Gazprom has had half of its 54 clients open accounts at the Russian Gazprombank.

Reuters reports that for weeks companies in the European Union have been seeking clarity on how they can continue legally buying Russian gas under the sanctions put on Russia. Moscow, in response to sanctions, required foreign buyers to make payments in rubles and have cut off supplies to countries that refused to comply like Bulgaria and Poland for example.

The prices of European gas have been rapidly changing throughout the week due to the uncertainty around companies’ ability to pay for Russian gas supplies.

Companies are required to have two accounts in order to perform the exchange from foreign currency to rubles. In addition to this, all conversions must be completed within 48 hours of purchase.

The EU has left companies confused about the legality of opening accounts to buy gas. Without explicitly stating whether doing so would breach sanctions buyers have struggled with making the decision themselves. The 27 member-states of the EU agreed unanimously on the sanctions giving them an even greater responsibility to comply.

Because contacts had already been in place for gas payments and the payment deadline is approaching there will soon be more information on who exactly has gone along with the Russian demand, said Novak.

Companies all over Europe are under pressure to make a decision as the time to fill storage in preparation for the winter’s high demand is approaching. Countries’ gas companies in the EU have reached different conclusions on the matter but a majority have agreed. According to data from Gas Infrastructure Europe, EU gas storage sites are currently roughly 41% full and seem to be on track to reach the minimum required 80% volume by November 1.

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