Posted on 04/22/2022 9:52:30 AM PDT by marshmallow
Moscow previously issued a new decree requiring "unfriendly states" to pay for Russian gas in rubles. Kremlin includes all countries that have imposed sanctions on Russia "unfriendly".
European companies will be able to pay for the Russian gas while meeting Moscow's demands to do so in rubles without violating EU sanctions at the same time.
The scheme proposed by the European Commission suggests that companies will wire their payments in euros or dollars to a bank account in Russia, where the currency will be converted into rubles. Brussels' memo said that the European firms' obligations will be complete once the payment in currency is deposited in the Russian bank. They will therefore not be in breach of the EU's own sanctions on Russia over its special military operation in Ukraine.
"EU companies can ask their Russian counterparts to fulfil their contractual obligations in the same manner as before the adoption of the decree, i.e. by depositing the due amount in euros or dollars", the document said referring to Moscow's decree to pay for gas in rubles. On the same day, UK Treasury also issued a document that temporarily allowed British companies to wire funds to the Russian Gazprombank to pay for Russian gas — despite London slapping sanctions on the arm of the national gas company. The sanctions waiver lasts until 31 May and will allow the UK companies to meet the new requirements for gas payments issued by Russia in April.
UK authorities explained the time limit on the waiver as part of the EU's aim of gradually phase out Russian energy imports in the light of the special operation.
(Excerpt) Read more at sputniknews.com ...
Looks like that sanction thing isn’t going as well as they had hoped.
It seems that’s it’s that they are paying in Russia not in Roubles. Although I suppose Russian banks get to determine when a deposit is actually a deposit so if for whatever reason they can’t convert it to Roubles they will just say the deposit was unsuccessful so the obligation will not be made and the EU would be in default. This, I belive, switches the risk to the buyer and away from the seller. That’s my understanding.
The Russians don’t care about which currency, as long as they’re paid. So if the Europeans need to virtue signal by claiming to not be paid in Rubles, it’s fine with Russia, as long as the money makes it to Moscow in a form that assures that Russia actually receives the money.
Journalism of our times:
99% of articles on ruble payment for gas never explain that the issue is Russia wasn’t going to get paid at all under the status quo.
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