Russian President Vladimir Putin has changed the procedure for foreign customers when paying for Russian gas. This eased fears that US sanctions on Gazprombank would lead to a halt in Russian gas supplies to Europe. TASR informs about it based on a Reuters report.
In the decree that Putin signed on Thursday (December 5) evening, canceled the requirement to pay for Russian gas directly through Gazprombank. A few hours later, the bank clarified that it remains the only authorized bank for payments, but foreign buyers can use other financial institutions to convert money into rubles before transferring it.
Payments through third parties were not possible before. Importers of Russian gas from Central Europe will thus be able to pay their bills despite the latest restrictions. However, the payment system still remains complex. Buyers will need to find banks that are willing and able to exchange foreign currencies for rubles and make transfers to Gazprombank.
The US imposed sanctions on the Russian bank last month as it stepped up efforts to punish Moscow for its war in Ukraine. The move raised the risk of disruption to Europe’s remaining gas flows from Russia, raising concerns about energy security. From 2022, Putin demands that payments to gas giant Gazprom be made in rubles and through accounts at Gazprombank.
According to the former Slovak Minister of Economy and energy expert Karel Hirman, another option enabled by Thursday’s ruling is to reach agreements between the participating partners. “In the case of Slovakia, this could mean that SPP, Eustream and Gazprom would offset each other’s payments,” he said. “For example, SPP would not pay Gazprom Export for gas, but instead SPP would pay Eustream for gas transit on behalf of Gazprom Export,” vysvetlil Hirman.
SPP, which is the largest Slovak energy supplier, stated that will continue to proceed in accordance with the terms of valid commercial contracts and that any changes will be analyzed in terms of their impact on contractual relationships. However, not all relevant stakeholders seem to have let go of their concerns. For example, Turkey still requests an exemption from US sanctions in the case of gas payments to Gazprombank, said Energy Minister Alparslan Bayraktar on Friday morning.
Bloomberg reminds that Europe was already preparing for the potential end of Russian gas flows through Ukraine before these latest events. The agreement on his transit between Moscow and Kyiv expires at the end of the year and there is no other alternative in sight. This would close one of the two remaining gas pipeline routes to Europe, which would became more vulnerable to a surge in demand.
