Where the Comment is King

THE NEWS COMMENTER

VOTE  (0)  (0)

The EU is drafting a plan to pay for Russian gas without violating sanctions, insiders say

Added 05-15-22 05:14:02am EST - “New guidance could allow gas importers to open a state-owned Gazprombank account and pay in euros or dollars, which would then be converted to rubles.” - Businessinsider.com

CLICK TO SHARE

Posted By TheNewsCommenter: From Businessinsider.com: “The EU is drafting a plan to pay for Russian gas without violating sanctions, insiders say”. Below is an excerpt from the article.

The European Union (EU) is drafting a plan to comply with Russian President Vladimir Putin's demands to pay for the country's gas in rubles without violating sanctions, sources told Bloomberg.

Sources in attendance at a closed European Commission meeting on Friday said new guidance would allow importers of gas to open a Russian state-owned Gazprombank account and pay in euros or dollars, which would then be converted to rubles by the bank.

According to Bloomberg, the sources said companies should make "a clear statement that they consider their obligations fulfilled once they pay in euros or dollars, in line with existing contracts." The commission did not immediately respond to Insider's request for comment outside normal working hours.

Putin is pushing for "unfriendly" countries to pay for gas in Rubles to maintain the strength of a currency that is being propped up by strict capital controls and high interest rates, threatening to cut off a line that supplies 45% of the EU's gas imports.

The commission is now trying to find a way to satisfy Putin's demands without technically breaching sanctions, with an indication that paying into a Gazprombank account in euros or dollars would be legally sound. 

Read more...

If you don't see any comments yet, congrats! You get first comment. Be nice and have fun.

Comment Box is loading comments...

CLICK TO SHARE

BACK TO THE HOME-PAGE