As Russia’s attack on Ukraine continues, some states in the European Union (EU) are weighing rouble payments for Russian gas despite the risk of undermining sanctions, according to multiple reports on Thursday (April 28).
Russia supplies gas via pipelines to 23 European countries. The Kremlin demanded that all transactions to purchase its gas be made in the Russian currency roubles as a way for it to sidestep economic sanctions from most of the world.
European countries initially rebuked rouble payments, not only to uphold sanctions but also as a way to maintain a stand against Russian President Vladimir Putin’s attack on Ukraine, the second-largest country in Europe after Russia.
Poland and Bulgaria were cut off earlier this week by Russian gas giant Gazprom PJSC for not making payments in roubles. That move sparked fears in other EU countries.
One of Germany’s biggest energy firms Uniper told CNN that it will pay Russia in euros, which will then be converted into roubles. It said it believes a “payment conversion compliant with sanctions law” is possible. Austria is following the same course, per reports.
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“Uniper is in talks with its contractual partner about the concrete payment modalities and is also in close coordination with the German government,” the company said in a statement.
Although Germany has slashed its consumption of Russian gas from 55% of imports to 35%, for now, it needs Moscow to keep the country out of a major recession.
“This would have dramatic consequences for our economy,” it said in its statement. Austrian energy firm OMV told CNN that it is also “working on a sanctions-compliant solution” to pay Gazprom for gas.
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