Energy ministers from European Union countries are holding emergency talks in response to Russia’s decision to halt gas supplies to Bulgaria and Poland.
Russia cut off supplies to the two nations last week after they refused to comply with the Kremlin’s demand for payment in rubles. The countries are well equipped to cope with the stoppage as they were already planning to cease all purchases from Russia this year, but countries more reliant on Russian gas, such as Germany, are now nervously looking over their shoulders.
Moscow has insisted that foreign gas buyers must deposit euros or dollars into an account with Russian bank Gazprombank, which would convert the payments into rubles.
Advice from the European Commission has been unclear so far, on the one hand claiming that complying with Russian demands could breach EU sanctions whilst also suggesting payments may be compliant if declared completed once the euro or dollar payment had been sent.
With companies in a number of European countries due to make gas payments to Russia in the coming weeks, several states have asked for clarification.
Brussels is drafting additional guidance following requests from Bulgaria, Denmark, Greece, Poland and Slovakia.
Supplies to Bulgaria and Poland were cutoff after they outright refused to engage with Moscow’s demands, whilst other European countries including Germany have recommended companies use the workaround suggested by the Commission.
Under the Russian decree the buyer’s obligation is only fulfilled after the payment has been converted to rubles. It is unknown whether the workaround will be accepted by Moscow on an ongoing basis.