The European Union on Monday has opened up a new direction to trading with Moscow for gas, despite international sanctions on Russia amidst their attack on Ukraine, a sovereign nation in Europe.
The new EU directive has put up to bow for pressure from Russia, who announced in retaliation to their sanctions that, Russia will never trade in gas for countries who are not willing to transact in roubles as a medium of exchange for gas, despite condemnation from countries who rely on Moscow for gas, the country remains adamant on her stance.
According to a report, Russia supplies a significant volume of fossil fuels to other European countries. In 2021 it was the largest exporter of oil and natural gas to the European Union, and 40% of gas consumed in the EU came from Russia with Germany and Italy being the most dependent on them.
In the face of international condemnation for Russia’s attack on Ukraine, the European Union is ready to comply with Russia’s demand for the Rouble as a means of getting gas from them, as an alternative to gas from Russia seems way too high, with the rising inflation in the global markets as President Putin warned earlier.
According to the EU, its guidance doesn’t alter companies from conceding to open accounts at Gazprombank, nor will it stop the purchase of gas from Russia, but it must be done in accordance with the European Union guidelines on Russia’s sanction.
According to them, companies can keep buying gas without breaching sanctions, as they relaxed their stance with Moscow over energy supplies.
A revised guideline sent to member states by the Union said that companies should make a clear statement that they consider their obligations fulfilled when they pay in euros or dollars, and that “EU sanctions do not prevent economic operators from opening a bank account in a designated bank for payments due under contracts for the supply of natural gas in a gaseous state, in the currency specified in those contracts.”
According to the EU guidelines, they continue to remain adamant about using euro or dollar as payment for gas based on existing contracts and agreements between them and Russia, but not neglecting the fact that they can open an account with the designated bank insisted by Russia.