Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Several European traders have started to pay for Russian gas in roubles - sources

Stock Markets Apr 28, 2022 07:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A pressure gauge is pictured at a Gaz-System gas compressor station in Rembelszczyzna outside Warsaw October 13, 2010. REUTERS/Kacper Pempel/File Photo

(Reuters) - Some European traders have started to pay Russia for gas sales in roubles, while large clients have yet to do so, two sources familiar with the matter told Reuters on Thursday.

"Several traders, maybe more than five, have started payments," one source said on condition of anonymity because they were not authorised to speak to the media.

Russian President Vladimir Putin has demanded that countries he terms "unfriendly" must pay for gas in roubles or be cut off.

Under the new Russian payment system, buyers are obliged to deposit euros or dollars into an account at Gazprombank, which has then to convert them into roubles, place the proceeds in another account owned by the foreign buyer and transfer the payment in Russian currency to Gazprom (MCX:GAZP).

The scheme was designed as a response to sweeping Western sanctions against Russia following the start of what Moscow calls its "special military operation" in Ukraine.

Gazprom and Gazprombank did not respond to requests for comment on Thursday.

The European Commission has accused Moscow of blackmail over its demand to be paid in roubles but in an advisory note issued last week, the Commission said buyers of Russian gas could participate in the scheme if they could confirm payment was complete once they had deposited euros, as opposed to later when the euros were converted to roubles.

Russia cut off gas supplies to Poland and Bulgaria on Wednesday after they refused to pay in roubles under the new arrangement stipulated by Putin. [L2N2WP1MN]

A senior European Union official said on Thursday that Poland and Bulgaria both used their existing method to pay for Russian gas before Moscow cut their gas supplies, and the countries did not comply with Moscow's proposed mechanism to pay in roubles.

The Kremlin has said payments for deliveries that took place after Putin's decree took effect were expected in May. A source named May 20 as "validation" date for payments.

There have been mixed signals from Gazprom's top consumers of gas about the rouble scheme of payments.

Three sources said on Thursday that Italian energy group Eni has yet to make a decision regarding the payment scheme Russia has introduced and is waiting for clarity on whether it amounts to a breach of sanctions.

Uniper, Germany's main importer of Russian gas, said on Monday it would be possible to pay for future supplies without breaching European Union sanctions. However, it later said that no decision had been made.

Hungary has said it plans to pay for Russian gas in euros through Gazprombank, which will convert the payment into roubles to meet the new requirement.

Several European traders have started to pay for Russian gas in roubles - sources
 

Related Articles

Norway pledges 1 billion euros to support Ukraine
Norway pledges 1 billion euros to support Ukraine By Reuters - Jul 01, 2022 9

(Reuters) - Norway on Friday pledged 1 billion euros ($1.04 billion) to help Ukraine defend itself, support people in need and for reconstruction in the wake of Russia's invasion....

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email