Austria, Germany, Italy open Ruble accounts in Russia

Vienna, Austria- Austria, Germany and Italy have opened Rubble accounts with Russia’s Gazprombank that will enable them to purchase natural gas.

According to Russia’s new payment scheme, countries that have placed sanctions on Russia should open Gazprombank accounts where they can then deposit funds in their currency of choice, which the bank then converts to Rubles.

Austria’s oil and gas conglomerate, OMV, said yesterday that it had opened an account with Gazprombank to pay for Russian gas imports, insisting that the scheme does not violate the current European Union (EU) embargo against Russia.

“We have implemented a payment process that does not violate sanctions and ensures timely payments for gas supplies. We consider our payment obligations fulfilled with the transfer of the amount in Euros,” said OMV.

The Italian government has also reportedly been in discussions with the European Commission, after which the Italian energy company Eni, announced it had begun proceedings to open accounts at the Russian bank, one in Euros and one in Rubles.

Meanwhile, Russia’s Gazprom Export has said natural gas supplies to Finland will be halted starting from today.

“As of the end of the working day on May 20 (the payment deadline stipulated by the contract), Gazprom Export did not receive payment from Gasum (Finnish state-owned energy group) for gas supplies in April.

In this regard, Gazprom Export notified Gasum of the suspension of gas supplies starting from May 21, 2022 and until payment is made in accordance with the procedure established by the (Presidential) decree,” read a statement from Gazprom Export.

Russia has since said it will not supply free natural gas to countries that refuse to honor the new payment mechanism.

However, Poland, the Netherlands, Denmark, Bulgaria, the United Kingdom (UK), Slovenia, and the Baltic States are among the countries that have publicly refused the new payment mechanism.