Twenty European buyers of Russian gas have already opened a ruble payment account

Twenty European buyers of Russian gas have already opened a ruble payment account

Ten more European gas buyers have opened accounts with Gazprombank. Consequently, the total number of customers who are preparing to pay for Russian gas in rubles, as demanded by Russian President Vladimir Putin, has doubled. Citing a source, Bloomberg reported.

 

"A total of twenty European companies have opened accounts, 14 more customers have been asked to provide the documents needed to open them," the source said, but declined to name the companies.

 

As payment deadlines for April deliveries to major Western European buyers approach the end of this month, Russia has taken steps to allay EU fears that the payment mechanism could violate sanctions. A source close to Gazprom said the current terms mean that the deal effectively ends after the buyer pays Gazprombank in foreign currency, as further conversion into rubles is automatic and does not require the involvement of Russia's central bank, which is under EU sanctions.

 

The bloc has yet to say whether Russia's actions will allay its fears, but Italian Prime Minister Mario Draghi said Wednesday that companies will be able to pay for gas in rubles without violating restrictions.

 

"Most gas importers have already opened ruble accounts with Gazprom," he said at a news conference.

 

He added that Germany's largest gas importer has already paid in rubles. Like Italy, Germany is a major consumer of Russian gas.

 

The source said that the number of customers who paid in rubles is still four, as at the end of last month. According to him, payments from other buyers should be made at the end of this month.

 

European customers have been trying for weeks to figure out how they could comply with Putin's order to pay for Russian gas in rubles from April 1 and not violate European Union sanctions imposed over Russia's invasion of Ukraine. Under the new mechanism, customers must open two accounts: one in foreign currency and one in rubles at Gazprombank.



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Ten more European gas buyers have opened accounts with Gazprombank. Consequently, the total number of customers who are preparing to pay for Russian gas in rubles, as demanded by Russian President Vladimir Putin, has doubled. Citing a source, Bloomberg reported.

 

"A total of twenty European companies have opened accounts, 14 more customers have been asked to provide the documents needed to open them," the source said, but declined to name the companies.

 

As payment deadlines for April deliveries to major Western European buyers approach the end of this month, Russia has taken steps to allay EU fears that the payment mechanism could violate sanctions. A source close to Gazprom said the current terms mean that the deal effectively ends after the buyer pays Gazprombank in foreign currency, as further conversion into rubles is automatic and does not require the involvement of Russia's central bank, which is under EU sanctions.

 

The bloc has yet to say whether Russia's actions will allay its fears, but Italian Prime Minister Mario Draghi said Wednesday that companies will be able to pay for gas in rubles without violating restrictions.

 

"Most gas importers have already opened ruble accounts with Gazprom," he said at a news conference.

 

He added that Germany's largest gas importer has already paid in rubles. Like Italy, Germany is a major consumer of Russian gas.

 

The source said that the number of customers who paid in rubles is still four, as at the end of last month. According to him, payments from other buyers should be made at the end of this month.

 

European customers have been trying for weeks to figure out how they could comply with Putin's order to pay for Russian gas in rubles from April 1 and not violate European Union sanctions imposed over Russia's invasion of Ukraine. Under the new mechanism, customers must open two accounts: one in foreign currency and one in rubles at Gazprombank.