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EU Drafts Plan for Buying Russian Gas Without Breaking Sanctions

  • EU executive updates guidance on Putin’s rubles-for-gas demand
  • European companies seek ways to continue imports from Gazprom
Pipelines near the Bovanenkovo deposit, a natural gas field near Bovanenkovskoye on the Yamal Peninsula in Russia.

Pipelines near the Bovanenkovo deposit, a natural gas field near Bovanenkovskoye on the Yamal Peninsula in Russia.

Source: Bloomberg

The European Union is set to offer its gas importers a solution to avoid a breach of sanctions when buying fuel from Russia and still effectively satisfy President Vladimir Putin’s demands over payment in rubles.

In new guidance on gas payments, the European Commission plans to say that companies should make a clear statement that they consider their obligations fulfilled once they pay in euros or dollars, in line with existing contracts, according to people familiar with the matter. The EU’s executive arm told the governments that the guidance does not prevent companies from opening an account at Gazprombank and will allow them to purchase gas in accordance with EU sanctions following Russia’s invasion of Ukraine, the people added.