Europe Will Not Stop Gas From Russia – Free PDF Download

NEWS

• EU softened its stance in a standoff with Moscow over energy supplies.
• European Union said companies can keep buying gas without breaching sanctions

• What happened in 2 weeks that EU changed it’s approach towards Russia while dealing with Gas ?
• European Companies have hit low after remarkable gains in the beginning

• To meet the demand producers are mute on raising Production and Supply

• European Commission sent its revised guidelines to member states in this regards
• It said companies should make a clear statement that they consider their obligations fulfilled once they pay in euros or dollars.
• The guidance does not prevent companies from opening an account at Gazprom Bank and will allow them to purchase gas in accordance with EU sanctions following Russia’s invasion of Ukraine.

What is Gazprom Bank ?

• Gazprom Bank (Joint Stock Company) is one of the largest multi-faceted financial institutions in Russia, providing a wide range of banking, financial, investment products and services to corporate and private customers, financial institutions, institutional and private investors.
• The bank provides services to key sectors of the Russian economy – gas, oil, nuclear, chemical and petrochemical, ferrous and nonferrous metallurgy, electric power industry, engineering and metalworking, transport, construction, communications, agriculture, trade and other industries

HURDLE :-

• Account should be in Gazprom Bank
• Payment in Ruble

:- Vladimir Putin

• European companies are starting to move ahead to comply with Russian demands and keep the gas flowing
• Italian energy giant – Eni SpA will move to open accounts in rubles and euros with Gazprom Bank by Wednesday (18^th May,2022) so that it can make payments on time and avoid any risks to gas supplies
• German giant Uniper SE and Austria’s OMV AG have also said they expect gas purchases to continue.

• German Economy Minister Robert Habeck expressed optimism regarding German companies trading in Gas and payment methods with Moscow, despite the sanctions regime and Moscow’s new rules.

• “The companies will pay their next bills in euros EU sanctions would still allow Russian banks to transfer this money internally to ‘so-called K accounts’ . That is, in my view, in conformity with the sanctions, also according to the EU commission.”

                     :- Robert Habeck

• Left it open whether these would be euro or ruble accounts
• “I am disappointed to see that in the European Union there is consent to pay for gas in rubles. Poland will stick to the rules and will not yield to Putin’s blackmail.”

                 :- Mateusz Morawiecki (Polish Prime Minister)

• Russia halted gas flows to neighboring Poland in late April

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