EU cautions oil companies not to pay in ruble

EU cautions oil companies not to pay in ruble

Ursula von der Leyen, President of the European Commission, has warned corporations not to pay for gas in rubles as requested by Russia.

Russian President, Vladimir Putin last month enacted a law requiring international buyers of Russian gas to pay in rubles or have their supplies cut off.

This move according to Putin was necessary to enable Moscow to access the funds due to Western sanctions over Ukraine. And would require international gas buyers to open ruble and hard currency accounts with Gazprombank, which will collect their payments in foreign currencies and convert them to rubles through auctions on a Moscow exchange

On Wednesday, Russia through Gazprom PJSC (GAZP) ceased the supply of gas to Poland and Bulgaria in keeping to its threat to cut off supply if payments were not made in rubles.

Ursula von der Leyen said, “Companies with such contracts should not accede to the Russian demands.”

“This would be a breach of the sanctions so a high risk for the companies.”

A source told Bloomberg that some European companies have now complied with the Russian president’s requests.

Robert Habeck, Vice-Chancellor of Germany said “Russia is showing that it’s ready to get serious, that if one doesn’t comply with supply contracts or payments, they’re ready to put a stop to gas deliveries.”

“We have to take that seriously, and that also goes for other European countries. I take that seriously,” he added.

Robert Habeck said the continent had to be ready for a wider cutoff.


Author: Greg