According to Roberto Cingolani, Italy’s minister in charge of energy security, European energy providers should be temporarily permitted to comply with Russian demands to pay for gas in rubles.
“I think it will be good for a few months, at least, to allow companies to go ahead and pay in rubles, while we understand the legal framework and the implications,” he said.
He wants “a swift and very clear announcement from the European Commission” confirming that oil and gas companies can pay in rubles for the time being.
Meanwhile, Rome is preparing for a probable Russian gas shutoff by implementing energy-saving measures and perhaps extending the life of coal-fired power stations.
To boost the value of the Russian currency, the Kremlin has requested that energy businesses from “hostile countries,” including all EU members, pay for gas in rubles.
Companies must open euro and ruble accounts with Gazprombank of Russia, and Russians will consider completing gas payments only after the ruble has been deposited.
The European Commission has advised firms against opening ruble-denominated accounts, claiming that doing so would breach sanctions imposed on Russia for its actions in Ukraine.
According to its guidelines, utilities can make payments in euros — which are deemed final under current contracts — and then Russia can convert them to rubles later.
For now, the Kremlin insists that companies follow its plan. Russia’s state-controlled Gazprom cut gas supplies to Poland and Bulgaria last week after they refused to comply with Moscow’s demand.
“I believe oil and gas companies cannot afford to pay and then they can be accused of breaking sanctions,” he said ahead of Monday’s crisis talks of EU energy ministers in Brussels. , but at the same time, they cannot take the risk … “These are long-term contracts, the cost will be very high.”
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