By Jan Strupczewski

BRUSSELS(Reuters) -Russian gas would be paid in roubles for by European Union buyers, breaking the EU’s sanction regime against Moscow.

While the note is technically preliminary and not final, it was made clear that the Russian Presidential Decree, March 31, had been unofficially translated. According to the note, the law created several layers of new obligations for EU gas buyers. This prevented them from completing the sale.

According to Reuters’ internal note, “This mechanism could lead to a breach of EU restrictive measures in regard to Russia, its government and the Central Bank of Russia; as well the general broad prohibition to circumvent the EU restrictive steps.”

Russian President Vladimir Putin issued a decree on March 31 that required EU buyers open at least 2 special accounts with Gazprombank. These accounts can be used to pay for gas and other payments.

Gazprombank would continue to pay the EU buyer in contract currency, euros or dollars, but only after Gazprombank converts the currency into Russian roubles through a deal with Russia’s central bank and deposits the roubles, according to the note.

According to the Commission note, “The effect…is that payment is not completed in the currency set under contract at the time it is deposited into the accounts…but rather at an unknown and undecided moment after foreign currency…is converted in to rubles and credit to the second particular account.”