Europe pays for gas in rubles with a financial device suggested by Gazprom

(By Massimiliano D'Elia) Close to the new deadlines for gas payments to Moscow, the EU has probably found an interlocutory solution to the question of the payment in rubles of the precious hydrocarbon: EU companies will be able to support the conditions of the Kremlin without violating the sanctions.

Once the sum has been paid in euros or dollars, with a public declaration they will be able to consider their contractual obligations with Moscow respected. The subsequent conversion into rubles will be unilateral by Russia, Brussels will never recognize such an operation.

A solution, a "patch", in the face of the predominant need of some European countries, Italy in the lead, to be able to take advantage of Russian gas because they are not yet able to declare full energy autonomy following too much wicked policies midcentric of the last years.

Una financial engineering solution sought since March 31, when the Kremlin passed a decree that obliged European companies to open two accounts to buy gas: one in euros and one in rubles. By decreeing the fulfillment of the agreements only once the payment has been converted into national currency.

The Moscow ordinance, however, did not specify the timing for the exchange of currency and whether it should necessarily and directly involve the Russian Central Bank, hit by Western sanctions. All elements which, according to EU experts, resulted in one exit strategy in order to circumvent the restrictive measures. So Brussels wrote to European companies saying that payments could only be made in euros or dollars, never naming the Russian currency. An unsatisfactory solution, so much so that many countries in the EU area, Italy as the leader, have asked for more clarification.


The solution

It was directly who provided a solution Gazprom who, in a letter sent to customers, ensured that payments could be made in euros, declaring that the Russian Central Bank was not involved in the currency exchange.
A stroke of genius of the Russian entrepreneurs who removed from theimpasse the EU, bogged down by its own sanctions.

On Friday evening at the Berlaymont building the director general of the Energy DG of the European Commission, Ditte Juul-Joergense, convened the representatives of the EU countries to illustrate the update of the guidelines published on 21 April.

European companies, after payment in euros, must however publicly make it known that they have exhausted their obligations towards Moscow. After that, it doesn't matter who changes the currency. In this regard, it is not yet clear from Brussels whether or not the Community companies will be able to open the second ruble account with Gazprom Bank.

Discontent among the twenty-seven

Italy, Germany, France and Hungary will take this path because GazpromBank is not among the institutions sanctioned by the EU. Poland, the Baltic countries and the Netherlands referring to the words of vender Leyen: "Paying in rubles violates the sanctions", ask for stricter and equal rules for all.

In the next few days the ambassadors and foreign ministers of the member countries will meet in Brussels to discuss the issue, even if at this stage each country will most likely look after its own interests independently, which unfortunately still do not converge today.

Europe pays for gas in rubles with a financial device suggested by Gazprom