Published on 12:00 AM, May 22, 2022

RUSSIAN GAS

Germany and Italy okayed payments after Brussels’ nod

The Russian pipe laying vessel Akademik Cherskiy to complete the Nord Stream 2 gas pipeline project is moored in the port of Mukran on the island of Rügen in north-eastern Germany. Photo: AFP/FILE

Germany and Italy told companies they could open rouble accounts to keep buying Russian gas without breaching sanctions against Moscow following discussions with the European Union, sources said.

The debate over Russia's demand that foreign buyers pay for gas in roubles has tested the resolve of European governments to take a hard line against Moscow over the war in Ukraine.

Poland, Bulgaria and Finland have refused to comply with Moscow's demand that importers pay for gas via rouble accounts with Gazprombank and their supplies have been cut. Other member states, however, have been unwilling to steer companies towards action that could result in losing vital supplies of Russian gas that heats homes and powers factories.

Brussels has given two sets of written guidance on how to buy Russian gas without breaching sanctions, but the legal route remains foggy as EU officials also advised firms in a closed-door meeting not to open rouble accounts with Gazprombank.

Some diplomats in Brussels from EU member states said they thought the advice was intentionally vague to enable countries to open rouble accounts and keep buying Russian gas.

"One has the impression that it leaves the door open for business as usual," one diplomat said, adding that in their view it risked undermining EU unity against Russia if companies in some countries opened rouble accounts but others did not.