(Bloomberg) —

The European Union tried to draw a line under its disorderly response to Russia’s threat to turn off the , telling companies they risk breaching sanctions if they open bank accounts in rubles.

European companies from Italy to Hungary have been quietly taking steps to prepare to comply with Vladimir Putin’s decree that gas must be paid for in local currency. While the EU rejected Moscow’s demands, the bloc’s own guidelines last week appeared to suggest some kind of compromise was possible to keep supplies flowing. 

Poland, outraged by the potential for other countries to exploit loopholes after its own gas was switched off this week, led a group of countries at a closed door meeting on Wednesday that called for more clarity in the EU’s approach. On Thursday, The Commission said that Russian-language accounts will violate sanctions if they are opened by Russian companies.

As traders reviewed the risks of Europe-wide cutoffs, gas prices declined on Thursday. Although there may still be some room for compromises, it is possible that Putin will claim victory now. 

German Chancellor Olaf Scholz indicated Thursday that the ball is now in Putin’s court. Economy Minister Robert Habeck said earlier this week that companies could open accounts in euros to pay for gas and it’s up to Moscow to decide how to convert it into rubles.

“Whatever the Russian government decides on this, we can only speculate, but doing that doesn’t make a lot of sense,” said Scholz.

What’s clear is that Europe’s unity is at stake. The bloc has been unified since the invasion. But when it comes to Russia’s lucrative energy exports — which some nations depend on more drastically than others — the divisions are bitter. 

Russian law requires that businesses open at least two accounts in bank — one in dollars and one in rubles. EU recommended that businesses pay in euros, and then declare to Gazprom MCX (MCX:), that they have fulfilled their obligations once the euro cleared. Russians demand that payments are made in rubles, as the Russian side insists on the clearing of the debt in euros. That gives the EU too much power over Moscow and its bank central.

Hungary’s government confirmed on Thursday that it is paying euros to Russia’s Gazprombank, which it is then allowing to be converted into rubles. It’s not clear whether they have opened a ruble account or not, or indeed whether they will have to revise their stance after the latest clarification.

Uniper SE, a German utility that is a huge client of Russian gas has stated publicly that it thinks it can continue to buy the Russian gas without violating any sanctions. According to sources familiar with the situation, Eni SpA in Italy — another big buyer — is preparing new steps that will allow it to meet the new requirements.

Bloomberg reports that on Wednesday, four European buyers paid in rubles while 10 opened Gazprombank accounts. This is to ensure the bank meets the new rules. Hungary’s Cabinet Minister Gergely Gulyas confirmed they were one of the 10.

The payment deadlines for many are set in staggered order, with most due in May’s second half. Companies and governments must decide whether or not to comply with Russian demands, which could strengthen Moscow’s position in the war in Ukraine. 

Scholz indicated that Germany was prepared to suspend supplies.

“You have to prepare for it, and we already started this before the war broke out. We know what we have to do.”

Updates and details are available throughout.

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