Payments in rubles: The creative ambiguity of Brussels and the difference of opinion

By Harry Floudopoulos

Yesterday, the European Council of Energy Ministers failed to agree on a common line on the issue of the payment of Russian gas in rubles, a fact that highlights the internal disagreements that prevail within the EU. The commission, led by Energy Commissioner Simpson, has insisted that the payments in rubles and the method used by Moscow in the famous Putin decree are a violation of sanctions and cannot be accepted.

However, she did not answer what the companies can do in view of the upcoming payments in May, referring to a new announcement that will be issued by the Commission with new, clearer instructions. Ms Simpson did not provide further details on the content of the directives or when this would happen.

A possible interpretation of the Commission’s stance on the issue could be that there is a deliberate ambiguity so that European companies can continue to import Russian gas under the Putin decree, without being seen as violating sanctions. at the expense of Russia.

Indicative of the contradictions on the part of the EU is Ms. Simpson’s statement that there is a consensus among member states that they will not pay for Russian gas in rubles, at a time when a large number of European companies have opened accounts in Russia’s Gazprombank, as stipulated in Putin’s decree.

It is recalled that according to a Community document released on Good Friday, with instructions to European companies, the Commission recommends to EU companies. make a statement that they consider that their obligations are fulfilled when they deposit euros in Gazprombank and not later when the payment is converted into rubles.

Energy crisis and prices

However, apart from the issue of the payment of Russian gas, yesterday on the agenda of the European Council was also the issue of rising energy prices and the impact it has on consumers and businesses. Here, too, the Commission, through Energy Commissioner Simpson, appeared rather unprepared for the challenges that have arisen. Ms Simpson said the Commission had responded to price concerns through the recently announced toolbox.

Of course the war will have its own impact and that means we will have to update the guidelines and propose additional steps, Ms Simpson said, adding that this is expected to happen by the end of May. In essence, the Energy Commissioner referred to the decisions of the summit, where the Member States will be called upon to decide whether there will be a more decisive unified response to the pandemic crisis model, as demanded by the countries of the south, including the Hellas.