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US may block the only way to pay for Russian gas for Europe - Reuters

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New US sanctions against Moscow could close the only way for European buyers to pay for Russian gas, increase volatility in the Russian currency market and bring the Kremlin closer to Beijing, Reuters reports UNN

On Thursday, Washington imposed new sanctions on Russia's Gazprombank, which prevent the state-controlled lender from conducting any new energy-related transactions that affect the US financial system. About 50 other Russian banks and the system of financial messaging of the Bank of Russia were also sanctioned.

Hungary and Slovakia, which have long-term contracts with Russia's Gazprom, are studying the changes, Reuters reports. 

Russian Deputy Energy Minister Pavel Sorokin declined to comment when asked whether Gazprombank would continue to receive payments from European customers.

“EU payments for energy resources through Gazprombank are likely to become impossible at the end of 2024,” analysts at Sinara Investment Bank believe.

Угорщина і "Газпром" обговорюють збільшення поставок газу на 2025 рік15.10.24, 09:59

The sanctions provide for a period of curtailment of operations involving Gazprombank until December 20, and operations related to the Sakhalin-2 oil and gas project in the far east of Russia until June 28, 2025.

The Kremlin said on Friday that the sanctions are an attempt by Washington to prevent Russian gas exports, but that a solution will be found. Gazprombank said the sanctions will not affect its banking operations, but did not answer questions about the decision on gas payments.

In March 2022, Moscow demanded that countries hostile to Russia pay for gas supplies under a scheme that would convert their currencies into rubles. Buyers could open two accounts at Gazprombank, one in rubles and one in foreign currency.

The US has allowed a dozen Russian financial institutions to conduct energy-related transactions, with some exceptions, until April 30, 2025. Some analysts believe that Gazprombank may be added to this list.

Міністри закордонних справ ЄС у Варшаві: Посилення підтримки України та санкцій проти рф залишаються пріоритетами19.11.24, 23:14

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