EU companies may be able to circumvent Russia’s demand for gas payments in rubles without violating sanctions if they pay in euros or dollars, which are then converted into Russian currency, the European Commission said on Friday. reports Reuters.
Companies should also seek additional terms for transactions, such as a statement stating that their contractual obligations are completed as soon as they deposit euros or dollars, the Commission recommends.
Moscow has warned Europe that it risks cutting off gas supplies if it does not pay in rubles. In March, it issued a decree proposing to energy buyers to open accounts with Gazprombank to make payments in euros or dollars, which would then be converted into rubles.
The commission said companies should continue to pay in the currency agreed in their contracts with Gazprom, 97% of which is in euros or dollars.
“Companies with contracts that provide for payments in euros or dollars should not give in to Russian demands. That would be contrary to the current sanctions,” a commission spokesman said.
In an advisory letter to member states on Thursday, the commission said Russia’s proposal runs the risk of violating EU sanctions, as it would put the actual completion of the payment in the hands of the Russian authorities.
However, the Moscow decree does not necessarily preclude a payment process that would comply with EU sanctions against Russia over the conflict in Ukraine, the document said.
Brussels said in the document that there were options that could allow companies to continue to pay legally for gas.
“EU companies can ask their Russian counterparts to fulfill their contractual obligations in the same way as before the decree was issued, ie by depositing the amount due in euros or dollars,” the document said.
However, the procedure for securing exemptions from the requirements of the decree is not yet clear, it said.
Prior to the payments, EU institutions could also make a clear statement that they consider their contractual obligations to be fulfilled when they deposit euros or dollars in Gazprombank, as opposed to later, when the payment will be converted into rubles, he said. The document.
“It would be appropriate to seek confirmation from the Russian side that this process is possible under the rules of the decree,” it said.
The Commission’s advice is not legally binding, but it is an attempt to steer the debate, as Member States work out how they can continue to pay for Russian gas.
The EU sanctions regime does not prohibit companies from opening accounts with Gazprombank or working with the bank to try to find a solution, the document said.
Source: Capital
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