FSUOGM: Kremlin lets gas buyers pay in euros as energy crisis shows signs of easing

Russia has amended the law to allow natural gas buyers in so-called “unfriendly” Western countries to pay their debts for supply in foreign currencies, in a possible sign that Moscow is looking to scale back its energy war against Europe.

Russian President Vladimir Putin issued a decree at the end of March requiring Gazprom’s customers in “unfriendly” countries to pay for their gas supply in rubles. The decree stated that those buyers must set up accounts at Gazprombank, to transfer their euro and dollar payments, as stipulated in supply contracts, for conversion into rubles before being sent to Gazprom.

The decree divided the EU, with some member states such as Poland, Bulgaria, Finland, the Netherlands and Denmark refusing to comply and subsequently having their supply cut off. Others, including Germany, agreed to meet the new terms. Russian pipeline gas supply to Europe shrank, only to drop further after Gazprom curtailed supply via the Nord Stream 1 pipeline over the summer.

The new decree, amending the previous one, does not provide grounds for Russian gas supply to be resumed to those buyers that had that supply cut off. Instead, it only refers to outstanding debts for supplies delivered after the first decree came into force. But it may also suggest the Kremlin is seeking a rapprochement in Russia-EU energy ties.

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