The European Union has issued a warning to its member states against fulfilling Russia’s gas-for-rubles demand. It believes that the ultimatum issued by Russian President Vladimir Putin to “unfriendly countries” aims to breach sanctions introduced against the Kremlin following its invasion of Ukraine, which began back on Feb. 24.
The European Commission presented its member states with a report which it provides a detailed analysis of the situation.
Putin’s gas-for-rubles demand envisions that European buyers open two accounts: one in a foreign currency and the other one in rubles. According to the scheme, Gazprom will be in charge of converting foreign currency into rubles and wiring the gas payments to itself.
The Commission believes that Putin is trying to create a legal loophole for the Russian Central Bank to secure complete control of the purchasing process. It also aims to use this opportunity to interfere with the currency exchange rate whenever it sees fit.
Since Russia wants to gain complete control of the purchasing process, that means that the buyer will fully depend on the Kremlin’s whims, enabling the latter to violate sanctions against the Russian government, its central bank, and other trustees.
It could also impact other bans imposed by the West relating to Russian energy giant Gazprom.
Most EU member states have made it clear that they are not planning to pay for Russian gas in rubles, with Germany reiterating its stance on April 13. According to the contracts, local companies are obliged to pay in dollars or euros, not in rubles.
The EU also underscored that it would react to any attempt by the Russians to circumvent sanctions.
