Even after EU warnings, companies who are now ready to pay for Russian gas in rubles to meet Putin’s demands

According to the sources, companies in Germany, Austria, Hungary, and Slovakia are planning to comply with the Kremlin’s demand that natural consumers sign up for a new payment channel that permits ruble payments. Despite EU warnings that such payments would breach sanctions, sources told the Financial Times that distributors in the four EU countries are ready to register with Gazprombank in Switzerland to meet the ruble payment requirement.

Uniper of Düsseldorf and OMV of Vienna, two of Russia’s top gas importers, are rumored to be taking part. According to the Financial Times, Italy’s Eni may sign up for the ruble payments by the end of May, while it is still weighing its options.

Bloomberg reported on Wednesday that four European natural gas importers have already paid Russia in rubles for supply, but did not specify which ones. If deliveries to other nations are also blocked, it might hurt Europe’s economy by driving up natural gas costs and possibly leading to rationing — but it would also hurt Russia’s economy.

Last month, Putin threatened to cut off the gas supply to countries that did not pay in rubles. Russia halted exports to Poland and Bulgaria on Wednesday, causing a 28 percent increase in European gas prices. The suspension, according to Gazprom, happened because the two countries refused to pay in rubles. Countries who comply with the new ruble payment method must pay Gazprombank in euro-denominated deposits, which the bank will convert to rubles in a separate account formed in their name.

Gazprombank, on the other hand, recently refused a ruble payment from a trade corporation that Germany had detained in Moscow. Despite global condemnation of Russia’s invasion of Ukraine, Europe continues to rely significantly on Russian energy. Ukraine had demanded that the world’s leading energy traders stop dealing with Russian oil entirely in April.