Ukraine negotiations: Energy companies want to pay in rubles - EU angry

Created: 05/20/2022, 11:36 am

By: Nail Akkoyun

Talks between Russia and Ukraine are suspended, despite sanctions, some energy companies want to pay in rubles: the news ticker.

• Negotiations in the Ukraine war:

  Talks between the conflicting parties Russia and Ukraine are on hold for the time being.

• Oil and gas deliveries:

  Moscow continues to insist on payments in rubles.

• You can find diplomatic news

  in the Ukraine conflict in our news ticker.

BRUSSELS - Despite Western sanctions over the Ukraine war, the Kremlin continues to insist that oil and gas deliveries be paid for in rubles.

However, since the European energy companies have to comply with the EU agreements, they are not allowed to comply with the Russian wish – at least in theory.

In practice, the situation appears to be different: the Italian energy supplier Eni, for example, recently announced that it had also opened a ruble account with Gazprombank.

Gazprom's Chayanda oil and gas condensate field, one of the largest in Russia.

(symbol photo) © Kirill Kukhmar/Imago Images

Other companies seem to rely on vague explanations, such as the French energy company Engie.

CEO Catherine MacGregor said this week that they had "agreed on a solution that appears to meet both Gazprom's expectations and our own expectations."

EU Commission spokesman Eric Mamer has already issued a warning that companies must comply with the guidelines.

"We don't consider anything else advisable," said Mamer.

It is unclear what the consequences for violating the sanctions could look like.

"EU member states must implement the sanctions and ensure that they are correctly followed by energy companies," Mamer told Welt newspaper.

However, it seems very unlikely that national governments would prosecute domestic companies in the current situation.

(nak)