Several European traders have started to pay for Russian gas in roubles
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© Reuters. FILEPHOTO: This is a picture of a Gaz-System station for gas compressors in Rembelszczyzna (northern Poland) October 13, 2010. REUTERS/Kacper Pempel/File Photo(Reuters] – Russian gas exporters have begun to pay some European traders in roubles. Large clients, however, have still not paid, according to two sources.
According to one source, “Several traders have initiated payments, possibly more than five,” the source stated on condition that they would not be named because they aren’t allowed to discuss it with the media.
Russian President Vladimir Putin demanded that “unfriendly” countries pay gas prices in rubles or are cut off.
The new Russian payment system requires buyers to pay euros and dollars to Gazprombank. They then convert the funds into roubles. Proceeds are transferred to Gazprombank (MCX).
This scheme was created in response to the widespread Western sanctions on Russia after what Moscow called its “special military operations” in Ukraine.
Gazprombank, Gazprombank, and Gazprom did not reply to comments on Thursday.
Moscow has been accused by the European Commission of blackmailing it over its demand for payment in roubles. However, in an advisory note last week, they stated that Russian gas buyers could join the scheme provided they can confirm that payment is complete after they have deposited euros. This was in contrast to when they converted the euros to roubles later.
Russia has cut gas supply to Poland, Bulgaria and other countries on Wednesday following a refusal by the Russians to pay in Rupees according to the new arrangement negotiated by Putin. [L2N2WP1MN]
On Thursday, a senior official of the European Union stated that both Poland and Bulgaria used their current method to pay Russian gas after Moscow reduced their supplies. However, they did not follow Moscow’s proposal to have them pay in Russian roubles.
According to the Kremlin, payments for delivery that occurred after Putin’s decree went into effect are expected to be made in May. According to a source, May 20 was the date of “validation” for payments.
Gazprom’s most important gas users have given mixed signals about the scheme of payments.
According to three sources, Eni in Italy has not yet made a decision on the Russian payment scheme. They are waiting to see if this amounts to an infringement of sanctions.
Uniper, Germany’s largest Russian gas importer, stated Monday that it was possible to purchase future supplies of Russian gas without violating EU sanctions. It later stated that it had not made a decision.
Hungary said that it would pay for Russian gas using euros via Gazprombank. The bank will then convert the payment to roubles in order to fulfill the requirement.
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