Russia is easing its restrictions on foreign payments for its fossil fuels in an effort to bypass new U.S. sanctions targeting a major bank. In a decree published on Thursday, President Vladimir Putin announced the removal of the requirement for payments to be made through Gazprombank, which has been sanctioned by the U.S. Treasury in an attempt to cut off Moscow’s funding for its war in Ukraine.
Since 2022, Russia had demanded that European buyers pay for energy in rubles via Gazprombank to evade restrictions on dollar and euro transactions. However, under the new rules, foreign importers will be allowed to use other banks or payment methods as agreed upon with the Russian supplier.
While several European countries, including Germany, Poland, and the Czech Republic, had their gas supplies cut off after Russia’s invasion of Ukraine, countries like Hungary and Slovakia continue to receive Russian gas under long-term contracts with Gazprom. Hungary recently requested an exemption from the U.S. sanctions to maintain its payments through Gazprombank.
The blacklisting of Gazprombank has already weakened the ruble, contributing to its recent decline, and further restrictions could impact gas payments for countries like Hungary and Slovakia. Although the relaxation of payment rules could provide a temporary solution, experts warn that other banks handling these payments might also face sanctions, potentially disrupting the energy trade further.
NEWS DESK
PRESS UPDATE