The Ministers of Energy of the European Union (EU) will celebrate this Monday, an extraordinary council convened just after the Russian gas Gazprom is cut off supply to Poland and Bulgaria for refusing to pay for deliveries in rubles. The meeting also takes place when the EU is preparing a new package of sanctions against Moscow that would include a ban on imports of Russian oil.
The objective of the ministerial meeting is “to take stock of possible additional performances in terms of security of supply, gas transit and management of gas stocks, in particular before the coming weeks and months“, the Council said in a statement. In addition, the ministers will discuss how to react “in case of interruptions in supply, on the state of preparation, and solidarity and emergency measures to strengthen the level of preparation of the EU”.
In reaction to the financial sanctions imposed by the EU on Moscow for the invasion of Ukraine, which allowed it to continue buying Russian hydrocarbons, the Kremlin reacted with a decree in which it obliged change the payment system to Gazprom.
This new regulation, unilaterally imposed on European gas importers, contemplates that they open two accounts in the Russian bank Gazprombank before May 20, one in euros and the other in rubles.
Under this mechanism, the purchase is not formally finalized until the deposit in euros has been converted to rublesbut this process, which is entirely in the hands of the Russian authorities, involves the Central Bank of Russia, whose transactions are prohibited under European sanctions.
The European Commission has asked companies not to accept what they describe as “blackmail“to pay in rubles if the contract is in euros or dollars – and 97% of them stipulate payments in those currencies – because they would be violating community sanctions against Russia, which would imply a “high risk” for the companies. However , and despite the clarifications published by the European Commission on what is allowed and what is not under those sanctions approved unanimously by the Twenty-seven, there is uncertainty.
Different energy groups have asked for clarifications and the Hungarian government, closer to Putin, has reiterated that its country will agree to comply with the payments through the system demanded by Moscow, to which Poland and Bulgaria have not acceded. These two countries, despite running out of Russian fuel, will not have supply problems thanks to their reserves, the diversification of suppliers and the solidarity of European partners, according to their governments and Brussels. In addition, the consumption of gas for domestic use in heating decreases in spring.
The European Union, in any case, is prepared for this maneuver by the Kremlin, according to the European Commission, which has indicated these days that the EU had already accelerated its disconnection from Russian gas and that it has contingency plans. The President of the Commission, Ursula von der Leyensaid after Gazprom’s decision that the Executive will continue to work along the lines it has defined since the beginning of the war to move away from dependence on Russian fossil fuels.
This path involves increasing reserves, diversifying supply, mainly through liquefied natural gas (LNG) transported by ship instead of by pipeline, and the deployment of renewable energies. The German Finance Minister, Christian Lindneraffirmed on Saturday that his government will not be “blackmailed” by Moscow when it comes to payments for the supply of Russian gas.
“We want to become independent as soon as possible,” he reiterated, in an interview with the Mannheimer Morgen newspaper, when asked about the possibility of Russia cutting off supplies to Germany. “We continue to pay based on gas supply contracts in euros and dollars. But, at this point, who can rule anything out when it comes to Vladimir Putin?” he stated.
The liberal minister strictly excluded making transfers in rubles. In parallel, the European Union is preparing the sixth package of sanctions against Russia since the beginning of the invasion of Ukraine, which is expected to include a ban on imports of Russian oil.
Germany has already assured that it “actively” supports the European Union imposing such an embargo. As reported by Bloomberg on Saturday, Brussels plans to propose that the arrival of Russian oil in the EU be totally banned by the end of the yearwith import restrictions gradually introduced until then.
According to that medium, member states could discuss the new sanctions next week. Community sources told Efe that the EC is working on more restrictive measures against individuals and “in additional penaltiesincluding those related to oil imports”.
Source: Lasexta
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