EU Plans to Issue Detailed Guidance on Russia’s Rubles for Gas Demand

The European Union will provide more detailed guidance in the coming days on what companies can and can’t do under EU sanctions rules to address Russia’s demands to pay for gas in rubles as governments fear the economic risk of Moscow halting supplies. #eudebates the unique initiative aiming to promote debate, dialogue, knowledge, participation and communication among citizens. #Ruble #Russia #RussianWar #Economy #Currency #Putin #Rubles #Energy EU energy commissioner Kadri Simson said Monday that the bloc needs to give companies clarity that the Kremlin’s mechanism -- which would require European companies to open euro and ruble accounts at Gazprombank -- “is a violation of the sanctions and cannot be accepted.” EU energy ministers met Monday in Brussels to discuss response to Russia’s demand after Moscow cut off gas supplies to Poland and Bulgaria last week for refusing to comply with its new order. Simson called the decision “an unjustified breach of existing contracts” and said it should be seen as “a warning that any member state could be next.” The Russian decree states that companies need to open two accounts with Gazprombank-- one in a foreign currency and one in rubles -- and that the legal obligation is only completed after the payment is converted into rubles and deposited into the second account. The EU has said that such a mechanism would breach contracts, as well as sanctions, but firms could be able to continue paying in euros or dollars if Moscow allows companies to end the transaction once the foreign currency is first deposited. Barbara Pompili, France’s minister for ecological transition, said that all member states indicated they will stick to EU guidelines on payment for gas. Hungary, which is highly dependent on Russian energy, has previously suggested it is open to paying in rubles to ensure continued deliveries. Yet Polish Climate Minister Anna Moskwa told Bloomberg News in an interview that remarks by ministers at the meeting indicated the EU was still short of unity. While many countries -- including Poland, Lithuania, Latvia, Estonia, Denmark and Finland -- endorsed the prohibition to pay in euros, some opted not to comment on the issue. Others, such as Italy and Austria, stressed their concerns over the risk of potential gas supply disruptions on the economy, she said. “The commission said it will clarify any remaining doubts,” Moskwa said in an interview. “We didn’t have any even for a moment and we bore the consequences. Russia wanted to intimidate the EU, to show that those who won’t comply will be cut off. But I hope that those goals won’t be reached and that after today’s meeting countries that have some doubts will reflect on that, even if they started some talks with Gazprom.” Simson said the EU will also work on updating its gas preparedness plans and look at high-level coordination of measures aimed at curtailing demand.