THE European Commission explained how EU companies can pay for Russian gas without violating coalition sanctions against Russia, with an updated directive on the subject seen by Reuters.
Last month, the Commission told countries that European companies would be able to pay for Russian gas, but only if certain conditions were met. Russia urges foreign buyers to start paying for gas in rubles because otherwise there is a risk of losing their supplies.
In the updated directive, which it announced on Friday in EU countries, the Commission reaffirmed its previous directive that EU sanctions do not prevent companies from opening a bank account and companies can pay for Russian gas – if they pay in the currency agreed in their existing contracts and declare the transaction completed when that currency is paid.
Almost all supply contracts concluded by EU companies with the giant Russian gas company Gazprom is, as reported by APE-MPE, in euros or dollars.
Russia has cut off gas supplies to Poland and Bulgaria last month because the two countries refused to comply with its demand for payment in rubles. EU governments and major importers have called for more clarity from Brussels on whether they can continue to buy gas, which heats homes, generates electricity and supplies factories across Europe.
Companies should make a “clear statement” stating that when they pay in euros or dollars, they consider that they have fulfilled their obligations under existing contracts, the directive states.
It should be understood that “such payments in this currency permanently relieve the company of payment obligations under these contracts, without any further action on their part as regards payment” is added.
By completing its obligations, once it has deposited euros or dollars, a company can avoid engaging in transactions with the Russian central bank, which has been sanctioned and which could be involved in converting euros into rubles.
By decree of the president Vladimir Putin it is stated that a transaction will be considered complete only after the conversion of foreign currency into rubles.
“Our fundamental position remains unchanged. “The payment process, set out in the Russian decree of March 31, would violate EU sanctions, but there are options available for EU companies to continue to pay in euros or dollars as stipulated in the agreed contracts,” a spokesman said. of the Commission.
Source: News Beast
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