Home News How can EU companies pay for Russian gas without violating Russia’s sanctions?

How can EU companies pay for Russian gas without violating Russia’s sanctions?

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Russian President Vladimir Putin has called on countries he described as “unfriendly” after the invasion of Ukraine to implement a scheme to open a Gazprombank account to make payments in euros or dollars for imports. natural gas, and these funds will be converted into Russian rubles.

According to the updated document consulted by Reuters, The European Commission has confirmed its previous position that EU sanctions do not prevent companies from opening accounts with a designated bank, and companies can pay for Russian gas as long as they do so in the currency agreed in their current contracts and declare the transaction completed when it is paid in that currency, informs Agerpres.

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Almost all procurement contracts of EU companies with Gazprom are in euros or dollars.

On April 27, Gazprom completely shut down natural gas supplies to Poland and Bulgaria in the absence of ruble payments from the two countries for fuel delivery. Some EU governments and companies have asked for detailed instructions from the EC on possible payment solutions.

Companies should make it clear that when they pay in euros or dollars, they consider their obligations under their existing contracts to be fully met. It should be understood that “such payments in that currency relieve the economic operator of the payment obligations under those contracts, without any additional actions on their part regarding the payment”, the document states.

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By fulfilling its obligations once it deposits euros or dollars, a company could avoid being involved in transactions with the Central Bank of Russia, which is on the list of sanctioned entities, and which could be involved in converting the euro into rubles.

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