The European Union warned member states to prepare for a breakdown in gas supplies from Russia as it insists Moscow's demand that imports be paid for in rubles would breach sanctions.
Russian President Vladimir Putin’s demand that foreign companies pay for gas in rubles would breach European Union financial sanctions against Russia’s central bank, the bloc’s energy commissioner Kadri Simson told a news conference Monday after a meeting of EU energy ministers in Brussels.
Russia has already cut off Bulgaria and Poland after their firms refused to comply with the directive.
Full disruption
Simson and the chair of the ministers' meeting, French ecological transition minister Barbara Pompili, said the 27 member states were united with Poland and Bulgaria and would stockpile gas to be prepare for a further breakdown in supply.
Simonson said Russia's actions showed "they are not reliable suppliers and that means that all the member states have to have plans in place for full disruption".
Simson said that, to her knowledge, no European company was preparing to follow Putin's decree and change its payment methods, which would involve a company opening two accounts in Russia’s state energy giant Gazprom's bank.
Payments would be deposited in one account in euros or dollars and then passed through the sanctioned Russian central bank, before arriving in the second account in rubles.
Request for clarification
Germany's minister for economic affairs and climate Robert Habeck said Berlin would follow EU policy but also suggested the dual Gazprombank accounts plan could be "a face-saving solution for Putin".
Several countries are to renew supply contracts at the end of May, and some, including Poland, the Czech Republic and Sweden, have asked for further clarification.
Italy reportedly wants to continue to pay for gas in rubles until there is a legal alternative, and its minister Roberto Cingolani, did not attend the meeting in Brussels.
Simson promised to provide him and all EU capitals with clearer guidance on resisting Putin's ultimatum.
More sanctions
The EU also said it will propose a phased-out ban on imports of Russian oil, but not gas, as part of a sixth package of sanctions against the Kremlin for its invasion of Ukraine.
The Commission will propose on Tuesday a tapered ban over six to eight months, to give time to diversify supply. One senior official said there could be opt-outs for the most dependent countries, like Hungary.
The sanctions will also target Russia’s largest bank, Sberbank, which will be excluded from the global banking communications system SWIFT.
On Monday, the EU's top diplomat, Josep Borrell, said the new sanctions package would result in "more Russian banks that will leave SWIFT".
(with wires)
