The procedure for opening accounts at Gazprom Bank was initiated without accepting unilateral amendments to the existing contracts
Eni, in view of the imminent payment deadlines foreseen for the next few days, has started as a precautionary procedure the procedures relating to the opening at Gazprom Bank of the two current accounts denominated K, one in euro and one in rubles, indicated by Gazprom Export according to a unilateral demand to modify existing contracts, in line with the new procedure for the payment of gas ordered by the Russian Federation. However, Eni has long since rejected these changes. Therefore, the opening of the accounts takes place on a temporary basis and without prejudice to any of the contractual rights of the company, which provide for the fulfillment of the obligation to pay against the payment in euros. This express reservation will also accompany the execution of the related payments.
The decision, shared with the Italian institutions, was taken in compliance with the current international sanctioning framework and in the context of an ongoing discussion with Gazprom Export to expressly confirm the allocation to Gazprom Export of any related costs or risks. to the different execution methods of payments. On the one hand, to date, Gazprom Export and the competent Russian federal authorities have confirmed that:
(i) the invoicing (actually received by Eni in the last few days in the contractually correct currency) and the related payment by Eni will continue to be carried out in euros, as contractually envisaged;
(Ii) that the operational activities of conversion of the currency from euro to rubles will be carried out by a specific clearing agent operating at the Moscow Stock Exchange within 48 hours of crediting and without the involvement of the Russian Central Bank;
(Iii) in the event of technical delays or inability to complete the conversion on time, there will be no impact on supplies.
On the other hand, the execution of payments with these methods does not currently find any European regulatory provision that provides for prohibitions that directly affect the possibility of carrying out the aforementioned operations (moreover, Eni, in line with the indications of the European Commission, has already clarified to Gazprom Export for some time that the fulfillment of contractual obligations is understood to be completed with the transfer in euros, and will renew the clarification when opening accounts K).
If the new procedure therefore appears neutral in terms of costs and risks, not incompatible with the sanctioning framework in force and with the fulfillment that occurs at the time of the transfer of the euro, a non-payment would expose Eni both to the risk of violation of the obligation to implement in good faith to any contractual requests by Gazprom Export imposed on it by its own authority, and to the risk for Eni of non-fulfillment of its sales commitments with downstream customers in the event of supply interruptions.
However, in the absence of future complete, exhaustive and contractually justified answers from Gazprom Export, Eni will initiate an international arbitration on the basis of Swedish law (as required by the existing contracts) to resolve the doubts regarding the contractual changes required by the new procedure. of payment and the correct allocation of costs and risks.
In any case, Eni firmly reiterates that it will comply with any future regulatory measures that may intervene to sanction gas trading or current counterparties.