Showing support for Poland and Bulgaria, which the Russians cut off gas at the end of April, was the main goal of Monday’s extraordinary meeting of energy ministers from 27 EU countries.
“Gazprom has confirmed that it is not credible”
– Russia’s decision only increased our determination to move away from Europe’s dependence on Russian gas as soon as possible. Gazprom confirmed that it is not credible at all – said Kadri Simson, EU energy commissioner, after the meeting.
The representatives of Poland and Bulgaria assured other ministers that cutting off supplies from Russia would not pose a direct threat to their economies.
– But what will happen when Putin cuts off the gas of the entire EU? Each EU country should have and each country has a crisis plan for such a circumstance, argued Commissioner Simson.
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The Russians explain the break in supplies by the fact that Polish and Bulgarian companies did not comply with Putin’s decree from the end of March, which introduces a complicated system of payment for gas in rubles. Although 97 percent. EU contracts with Gazprom were concluded in dollars or euros, Putin’s decree orders buyers to open two accounts – one in euros and the other in rubles – in Gazprombank.
How would such a payment work? An EU company would pay money for the gas in euros, while authorizing Gazprom to exchange it for ruble in cooperation with Russia’s central bank, which is under Western sanctions. Gazprom would recognize the payment only after it has been paid in rubles.
“This payment system is against EU sanctions,” emphasized Simson.
Poland and Bulgaria did not agree to follow Putin’s decree, although the European Commission interprets it to open an account in euros (but not in ruby) with Gazprombank. In the coming days, Brussels is to clarify its hitherto guidelines on how to apply sanctions when making payments to Gazprom at the central bank.
EU countries pay Russia for gas in rubles, bypassing sanctions? Brussels is not aware of such fees
Recently, there have been media reports that, for example, Hungarians have already paid for gas according to the scheme from Putin’s decree, or jointly with e.g. with Italy they intend to do so soon. Commissioner Simson argued, however, that the European Commission “is not aware of any payment in breach of sanctions.”
Minister Barbara Complili, who chaired Monday’s meeting on behalf of the French presidency of the EU Council, also said that “all EU countries announced their intention to comply with Brussels’ guidelines on gas payments for Gazprom”.
“Derusification” fee? This is what he wants, among others Poland
Polish minister Anna Moskwa brought to Brussels the idea of imposing a “solidarity” fee on Russian gas in the EU (also called a “derusification” fee by the Polish government), which would encourage EU clients to accelerate their independence from Russia. And at the same time, it would provide additional funds, e.g. to help Ukraine.
– EU countries are ready to take this initiative – assured Anna Moskwa after the deliberations, but our information shows that for now it is only about readiness for further discussions.
The system of additional charges on Russian gas increasing over time would have to be a rather complicated legal instrument, the implementation of which – after approval by the European Parliament and countries in the EU Council – could take up to two years. Meanwhile, the European Commission aims to make the entire Union independent of Russian energy resources in 2027.
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Gradual oil embargo? “Germany is not against”
The European Commission intends to present a draft of additional sanctions against Russia this week, which will also apply to imports of crude oil and refining products based on it.
– After two months of work, I can say that Germany is not against the ban on oil trade with Russia – declared Vice-Chancellor Robert Habeck in Brussels.
The final draft of the sixth package of sanctions against Russia is based on a “gradual embargo”, i.e. the phasing out of oil imports by the end of 2022. However, it is mainly Slovaks and Hungarians who are demanding a longer transitional period. And it is possible that some concessions in this matter will appear in the negotiations of the 27 EU countries.
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Author Tomasz Bielecki
Source: Gazeta
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