EU determines how Russian gas payments will be made

According to the reports in the international media, the EU Commission has sent a guide to the member states that includes methods that will allow natural gas payments to Russia in line with EU sanctions.

In the guide, it was stated that European companies can make gas payments to Russia by fulfilling certain conditions.

It is stated in the guide that companies can open an account in a bank determined by Russia and not pay to the account of this bank for gas purchases from Russia.

In the guide, it was pointed out that companies should make a statement that their obligations under existing contracts are fulfilled when they pay euros or dollars for gas.

Thus, it was stated in the guide that the companies would not have made any transactions with the Central Bank of Russia in converting the euro into rubles, and that the said transaction would not be within the scope of sanctions.

Russian terms of payment in rubles

Russia enacted the decree on April 1, which stipulates that unfriendly countries should open foreign currency and ruble accounts at Gazprombank and make their payments in rubles.

Accordingly, countries importing energy from Russia will primarily transfer the payment to their foreign currency accounts at Gazprombank, and Gazprombank will convert this foreign currency into Russian rubles and transfer it to their ruble accounts. Then, the payment will be transferred to the account of the supplier company and if the money is not deposited into the account in the mentioned bank, natural gas will be cut off.

While taking this decision, Russia aimed to add value to the Russian ruble on the one hand and aimed that Western countries would have to buy rubles from banks that imposed sanctions.

The EU Commission announced last month that gas payments by European companies to Russia in rubles would be a violation of existing sanctions.

Thereupon, EU member states requested information from the Commission on how to make payments without violating sanctions.

Russia had cut off gas in Poland and Bulgaria, which refused to pay in rubles.