Bloomberg reports citing sources within Russia’s Gazprom PJSC say that 10 European companies have begun compliance with Russia’s terms for sale of its natural gas by opening accounts in Gazprom bank to make payments in roubles. Four European companies have also paid dues in the Russian currency as per the sources.
This comes as uncertainty remains over how the European bloc may deal with Russia’s demand that is meant to shore up its currency and reserves amid wide-ranging sanctions on its financial institutions.
Germany, a leading economy and industrial center of the EU, has warned that a drastic reduction in gas supply would send it into recession and affect production, particularly for chemicals and auto manufacturers.
Bulgaria and Poland said yesterday on Wednesday that supplies of natural gas to their country had been restricted by Russia over their refusal to pay for it in roubles. Bulgarian Prime Minister Bulgarian Prime Minister Kiril Petkov said that “We will not succumb to such blackmail”. Bulgaria receives 90% of its gas supplies from Russia. Similarly, Poland, that receives almost 50%, said that it was in breach of contract and that Warsaw would levy fines on it for the same. Poland is also a top weapons-supplier to Ukraine against Russia and a member state of NATO.
The EU Commission has stated in an advisory note that if natural gas buyers reported payments at the time of depositing euros, and not when the euros were converted into roubles, then it would not be a breach of sanctions.
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