EU will abide by Russia's payment requirements, reports the media

According to reports, gas wholesalers in Slovakia, Hungary, Austria, and Germany intend to open accounts in the ruble.

According to a Thursday Financial Times report, some of Europe's biggest energy companies intend to pay for Russian gas supplies via a new payment mechanism. This is in response to Kremlin demands.

Gas distributors in Germany, Austria, Hungary, and Slovakia intend to open ruble accounts at Gazprombank in Switzerland, according to sources who spoke to the publication. They claimed that as payment due dates draw near, negotiations between European gas purchasers and Russian gas supplier Gazprom have become more heated.

By the new system, European businesses would continue to pay Gazprombank in euros for their imports to adhere to the sanctions regime. The Russian bank, which is not subject to EU sanctions, would then, upon their request, convert deposits made in euros into rubles in a second account formed in their names to pay the Russian gas supplier later.

Tiina Tuomela, the chief financial officer of Germany's Uniper, stated, "We believe that the modification of the payment method complies with the sanctions law and, thus, the payments are possible."

The OMV company in Austria also declared it had examined the Gazprom payment method request in light of the EU sanctions and was working on a resolution. Bloomberg reports that the Austrian company reportedly denied intentions to open a Swiss bank account to pay for Russian gas delivery on Wednesday. The rumors that the country was switching to paying for gas in rubles were earlier referred to as fake news by Austria's Chancellor Karl Nehammer.

According to FT's sources, Italy's Eni, another large customer of Gazprom, is considering its alternatives. It has till the end of May to make its subsequent payment for Russian supplies.

Vladimir Putin, the president of Russia, requested last month that 'hostile' nations pay in rubles for Russian gas. He has also cautioned that failing to adhere to the currency change could result in impacted countries losing access to Russian gas.

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