EU is in talks with the US to mitigate the consequences of sanctions against Gazprombank - Bloomberg

The European Union is pressuring the United States to look for "ways to ease U.S. sanctions" against Russia's Gazprombank, a financial institution that is key to ensuring the flow of Russian natural gas to the bloc, Bloomberg reports.

Details

Discussions continue even after Russian President Vladimir Putin rejected the requirement that foreign buyers use only this bank when buying Russian gas, a move aimed at preventing the impact of US restrictions.

Putin canceled the requirement for foreigners to pay for gas only through Gazprombank05.12.24, 22:23

"The EU and the US are discussing the type and scope of mitigation measures after some European governments and companies warned that sanctions would pose a risk to the security of supplies in the region," people familiar with the matter said.

According to the sources, the following options are being considered during the negotiations: whether it is possible to legally make payments through the Luxembourg subsidiary of Gazprombank, or whether it is better to use other payment channels.

While Putin's decree abolishing the requirement to pay directly through Gazprombank "helped calm the European gas market," it further complicated the payment system and left financial institutions still unsure of legal risks.

Add-ons

Last month, the United States imposed sanctions on a Russian bank, intensifying attempts to punish Moscow for the war in Ukraine, the newspaper notes.

The United States imposes sanctions on Gazprombank and the leadership of the Russian central bank. Zelensky thanked21.11.24, 19:57

In 2022, Gazprom changed the way it accepts payments from European buyers, demanding rubles through Gazprombank. In 2022, Poland and Bulgaria were shut down due to refusal to comply with the requirements, but Slovakia and Hungary all receive Russian pipeline gas. earlier this week, the government in Budapest submitted a request to the United States for refusal.