The European Union has proposed a path to import Russian gas in a way that stays within sanctions while honoring Moscow’s demand to be paid in rubles. The guidance aims to clarify how buyers can handle payments through Gazprombank, with payments still made in dollars or euros and contracts fulfilled as agreed. Under these terms, the regulator would not treat such payments as sanctions violations, provided the conditions are met. In Brussels, discussions at a closed gathering highlighted that some EU members voiced concerns about the legal implications of the plan, with countries like Germany, Hungary, France, and Italy showing support, while Poland asked for further legal clarification and suggested a ambassador-level meeting to review the specifics. Other states also voiced unease over whether it is permissible to open a ruble account with Gazprombank. A central point in the debate remains the potential creation of ruble accounts, a topic previously viewed as sanctionable in practice even if not written into formal documents.
rubles for gas
Bloomberg reports that roughly twenty European companies have opened Gazprombank accounts to facilitate payments for Russian gas, while another fourteen have requested lists of documents needed to set up such accounts.
Earlier, a decree signed by the Russian president established a new framework for payments by buyers from so-called unfriendly countries. Effective from April, these buyers must transfer funds to Gazprombank, receiving rubles in foreign currencies and then moving those funds to designated ruble accounts owned by importers. Russia asserts that gas deliveries will continue under existing volumes and price terms. The European Commission has noted that paying in rubles could conflict with current agreements, as several countries have said they will not switch to ruble payments. Gazprom has halted fuel exports to Bulgaria and Poland since late April, and warned it may reduce transit to other nations if certain actions are taken against it.
replace russian gas
European governments face the challenge of replacing Russian gas with supplies from the United States, North Africa, and the Mediterranean. The mood in markets, investor sentiment, and regional frictions among potential suppliers complicate efforts to shift away from Russian blue fuel. Analysts point out that Europe relies heavily on Russian gas and that many European sites face aging infrastructure and a lack of sufficient LNG import terminals. Efforts to boost U.S. production to close the European gap face environmental concerns and cautious investment. In recent years, higher commodity prices have not yet driven a broad surge in new drilling. Environmental groups worry about emissions, which has influenced policy choices in Washington.
Supply routes from Libya to Italy face political and security challenges, while Algeria has limited its expansion due to deteriorating ties with Morocco, a country involved in crossing pipelines to Spain and Portugal. Egypt has shown interest in long-term deals with other partners on different terms, which may affect its willingness to participate in a rapid expansion of European gas supply. The overall picture suggests a gradual transition rather than an immediate pivot, with careful navigation required to balance energy security, price stability, and environmental goals.