European Union flags flutter in front of the European Commission’s headquarters in Brussels, Belgium, 10 April 2019. REUTERS / Yves Herman / File Photo
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BRUSSELS, April 22 (Reuters) – EU companies may be able to circumvent Russia’s request to receive gas payments in rubles without violating sanctions if they pay in euros or dollars, which are then converted into Russian currency. commission on friday.
Companies will also have to seek additional terms for transactions, such as a declaration that they consider their contractual obligations to be completed after depositing non-Russian currencies.
Moscow has warned Europe that it risks cutting off gas supplies if it does not pay in rubles. In March, he issued a decree urging energy buyers to open accounts with Gazprombank to make payments in euros or dollars, which can then be converted into rubles.
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The commission said earlier this month that the decree risks violating EU sanctions, as it will put the effective completion of the purchase – once payments are converted into rubles – in the hands of Russian authorities.
However, in a consultation paper sent to member states on Thursday, the commission said Moscow’s proposal did not necessarily prevent a payment process that would meet EU sanctions against Russia over the conflict in Ukraine.
The Council of the Commission is not legally binding, but it is an attempt to focus the discussion as member states figure out how to continue paying for Russian gas.
Brussels said in the document that there are options that could allow companies to continue to legally pay for gas.
EU companies can ask their Russian counterparts to fulfill their contractual obligations in the same way as before the adoption of the decree, ie. by depositing the amount due in euros or dollars, “the document said.
However, the procedure for securing an exemption from the decree is still unclear, it said.
Before making payments, EU operators can also make a clear statement that they consider their contractual obligations to be fulfilled when they deposit euros or dollars with Gazprombank – as opposed to later, after the payment is converted into rubles. document.
“It would be advisable to seek confirmation from the Russian side that this procedure is possible under the rules of the decree,” the document said.
A spokesman for the European Commission said companies should stick to the currency agreed in their contracts with Gazprom – 97% of which are in euros or dollars.
The EU sanctions regime does not prohibit companies from opening accounts with Gazprombank or engaging with the bank to try to find a solution, the document said.
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Report by Kate Abnett; Edited by Ian Harvey
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