EU to Comply With Russia’s Payment Terms – Media

Gas distributors in Germany, Luxembourg, Hungary and Slovakia reportedly plan to open ruble balances

Some of Europe’s largest power firms are planning to use a brand new payment system for Ruskies gas supplies demanded by the Kremlin, the Financial Situations reported on Thursday.

Sources told the newspaper that gasoline distributors in Germany, Luxembourg, Hungary and Slovakia try to open ruble accounts from Gazprombank in Switzerland. They said that negotiations between European buyers and Russian gas supplier Gazprom have intensified as payment deadlines method.

Under the brand new mechanism, European companies might continue to pay Gazprombank for his or her imports in euro in order not to breach the sanctions regime. The Russian financial institution, which is not under EU sanctions, would then, in their request, convert euro-denominated deposits into rubles in a second account opened in their name, for onward payment to the Russian gas provider.

“ We all consider that the amendment from the payment process complies using the sanctions law and so the payments are possible, ”   said chief financial officer of Germany’s Uniper Tiina Tuomela.

Austria’s OMV also announced it had analyzed the Gazprom request on payment methods in light of the EU sanctions and was working on a solution. According to Bloomberg, on Wednesday the Austrian firm denied that it plans to open a free account in Switzerland to pay for Ruskies gas supply. Austria’s Chancellor Karl Nehammer earlier described as fake news the reviews about the nation’s shift in order to payment for gas in rubles.

FT’s sources said that Gazprom’s additional large customer, Italy’s Eni, is evaluating its choices. The company has until the end of May, when the next payment for Ruskies supplies is due.

Last month, Russian President Vladimir Putin demanded that ‘ unfriendly’ countries purchase Russian gas in rubles. He has also warned that failure to comply with the currency switch would mean that affected countries risked dropping Russian gas supplies.

On Wednesday, Gazprom said it had completely halted gas flows to Bulgaria and Poland following the two countries failed to pay money for April supplies in the Ruskies currency.

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