Austrian energy group OMV announced on Friday that it was opening an account with Russian Gazprombank for ruble conversion. The development came after repeated Austrian assertions that it would not pay for gas in rubles, as Russia demanded in response to EU sanctions over its invasion of Ukraine on 24 February.
“We have now implemented a sanctions-compliant payment process that ensures gas deliveries can be paid in a timely manner,” an OMV spokesperson told Reuters. “We consider our payment obligations fulfilled with the transfer of the euro amount,” the spokesperson added.
The European Commission (EC) this week permitted EU member states to continue buying Russian gas without breaching sanctions imposed on Russia, Reuters reported.
The newswire recalled that the EC has advised companies against opening a bank account in rubles at Gazprombank to do this, as the Kremlin requested, but in its formal guidance to governments did not state that this would breach sanctions. The Austrian energy group said it expects no problems through a conversion to rubles.
The Austrian energy group and Gazprom have longstanding business associations. However one week after Russia’s invasion of Ukraine, OMV pulled out of a USD 1bn acquisition of a quarter of Russia’s Achimov 4A/5A development at Russia’s largest gas condensate field in Urenqoy, a deal that had been years in the making.
Earlier this month Germany’s VNG said it would transfer euros to a Gazprombank account for ruble conversion to safeguard the country’s gas supplies.
The EU’s employment rate reached a record high of 70.9% in the fourth quarter of…
Greece has announced plans to repay its first bailout loans a decade ahead of schedule,…
Despite their export-driven economies and strong manufacturing bases, Central and Eastern Europe (CEE) countries may…
Slovenia is at the centre of a strategic struggle between France and the US, as…
The EU’s internal market is still falling short of its founding promise. Despite decades of…
An outbreak of foot-and-mouth disease (FMD) has prompted mass animal culls and tightened border controls…