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These top European energy companies are set to pay for Russian gas in rubles to meet Putin's demands despite EU warnings: report

https://markets.businessinsider.com/...nctions-2022-4

Companies in Germany, Austria, Hungary, and Slovakia are set to meet the Kremlin's demand that natural customers register for a new payment mechanism that facilitates ruble payments, the Financial Times reported.

Despite warnings from the European Union that such payments would violate sanctions, distributors in the four EU nations are preparing to register with Gazprombank in Switzerland, sources told the FT, to meet the ruble payment requirement.

Two of the largest importers of Russian gas are said to be participating — Düsseldorf-based Uniper and Vienna-based OMV. And by the end of May, Italy's Eni may sign up for the ruble payments as well, though it is still considering its options, according to the FT.

On Wednesday, Bloomberg reported four European natural gas buyers have already paid Russia in rubles for supplies, though it didn't mention which ones.

Putin threatened last month to cut off gas supplies to nations that did not pay in rubles. On Wednesday, Russia halted shipments to Poland and Bulgaria, triggering a 28% surge in European gas prices. Gazprom said the stoppage occurred because the two nations didn't offer payment in rubles.

For nations complying with the new ruble payment scheme, they must pay Gazprombank in euro-denominated deposits, which the firm would then convert to rubles in a second account opened in their name.

Earlier this week, however, Gazprombank rejected a ruble payment from a trading firm Germany had seized from Moscow.

Despite widespread condemnation of Russia's war on Ukraine, Europe remains heavily dependent on Russian energy.

In April, Ukraine had called for the world's largest energy traders to stop handling Russian oil altogether.

"They are in this cycle of financing war crimes and genocide against Ukrainian citizens," Oleg Ustenko, advisor to Ukraine President Volodymyr Zelenskyy told the FT.

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Russia declines Germany's ruble payment for gas after cutting off supplies to Poland and Bulgaria, report says

https://markets.businessinsider.com/...cut-off-2022-4

Russia's Gazprombank turned down a ruble payment from a trading firm Germany had seized from Moscow, sources told Bloomberg.

The payment for some April and May gas deliveries to Germany and Austria was rejected even though the trading firm — Gazprom Marketing & Trading (GM&T) — offered to pay in rubles, as Russian President Vladimir Putin has demanded.

GM&T previously was controlled by the German subsidiary of Russian state-run Gazprom, but Germany took over the unit in April. Now, the rejected ruble payment suggests Moscow looks to shut out a German-controlled GM&T.

The trading firm, which is among many that import gas to Germany, is still in talks with Gazprombank to push the transaction through, sources told Bloomberg.

The standoff comes as the Kremlin uses its energy exports to retaliate against Western nations that have imposed sanctions on Russia for its war on Ukraine.

On Wednesday, Moscow halted natural gas supplies to Poland and Bulgaria, sending European gas prices up 28% and adding to concerns that Putin could target other nations on the continent. Gazprom said the reason for the gas halt is that both countries failed to pay in rubles.

Meanwhile, four European gas buyers have paid Russia in rubles for supplies, complying with Moscow's demands, according to Bloomberg, which also said 10 European countries have opened accounts at Gazprombank to make ruble payments.