European Commission says EU companies can pay for gas in rubles
Apr. 22, 2022 10:08 AM ETXLE, SHEL, BTU, USO, NRT, VET, EQNR, VET:CABy: SA News Team165 Comments
- The European Commission said Friday that EU companies may be able to comply with Russia's proposed gas payment system, without running afoul of sanctions against Moscow.
- Shortly following the war in Ukraine, President Putin issued a decree mandating that Russian gas exports to "unfriendly" nations be paid for in rubles.
- Several EU leaders pushed back on the decree, indicating it would mark a contract violation, and insisting that gas transactions be settled in euros or dollars.
- Friday's comment from the Commission could bolster Russia's domestic currency market, which has now fully recovered from the invasion-induced selloff.
- The EU has proposed banning both Russian coal (BTU) and Russian oil imports (USO) (XLE) in coming months; however, the concession on currency payments likely points to continued Russian gas flows (EQNR) (SHEL) (VET) (NRT) for the duration of 2022.