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EU gives green light to companies buying Russian gas

The European Commission has updated its guidance to make it easier for companies in Europe to buy gas from Russia.

EU gives green light to companies buying Russian gas - Photo 1

Gas pipeline system at a pressurization station in Mallnow, Germany


Reuters news agency on May 16 reported that the European Commission (EC) issued new updated guidelines to help European Union (EU) countries to buy Russian gas without violating the embargo.

Last month, the EC said that companies could pay for gas from Russia without breaking the rules embargo EU for Moscow, but only if companies comply with specific requirements. The announcement came after Russia asked foreign customers to pay in rubles, or else it would lose supplies.

In the new guidance, the EC confirms that the guidance does not prevent companies from opening accounts at designated banks, and that companies can pay for Russian gas in the agreed currency in contracts. signed contract. The company will have to notify after completing the payment.

Nearly every contract of EU companies signed with the Group Gazprom of Russia are paid in euros or USD.

Ukraine blocks gas transit from Russia to Europe

Last month, Russia cut off gas supplies to Poland and Bulgaria because it refused to comply with demands for payment in rubles. Some EU countries and major importers want more clarity from the EC on whether they can continue to buy gas from Russia. Gas is used for heating, electricity generation and in many factories in Europe.

With the termination of obligations upon deposit in dollars or euros, a company in the EU can avoid being involved in dealings with Russia’s central bank, which is under EU sanctions.

However, Russian President Vladimir Putin decreed that a transaction was considered complete only after the foreign currency was converted into rubles. The EC was not immediately available for comment.

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