A source close to the European Commission said at the end of the ministerial meeting in Brussels yesterday that the EU (European Union) will not pay rubles for gas purchases and is preparing for supply cuts.

European Energy Commissioner Kadri Simson said that Russia’s requirement to receive payments in rubles “is a unilateral and unfair change in contracts, so it is legitimate to reject it”.

According to Simson, about 97% of contracts signed by European companies to purchase Russian gas specify the euro and the US dollar as payment currency.

Simson said payments due in mid-May will be made “in accordance with contracts”.

“We have to prepare for the suspension of supply,” said Simson.

The meeting is the first in the industry since Moscow cut off supplies to Poland and Bulgaria, which refused to pay rubles for liquefied gas imports.

At the end of the meeting, the European Commission conveyed its opinion to the bloc countries that paying Russian gas purchases in rubles is a violation of EU sanctions against Russia.

However, at ministers’ request, he said the Commission would “provide more detailed guidance on what companies can and cannot do in the context of sanctions”.

The problem has become a huge headache for the EU: about 40% of the liquefied gas used by European industry comes from Russia.

The possibility of Russia cutting off gas supplies to countries that refuse to pay the ruble raises the warning signs, and it is necessary to clarify what the alternatives might be to avoid this scenario.

“We want a clear statement on how we are going to move forward,” Czech Republic Minister of Industry and Trade Josef Síkela said at the end of the meeting.

“Very complex” process

Swedish minister Khashayar Farmanbar noted that “disclosure is ongoing, but the process is very complex”.

“Paying in one currency is one thing, but if the operation involves the central bank of another country, it becomes a different business and managing it will be delicate. [Europeia] He is doing his best to shed light on the matter,” he said.

Polish Minister for Climate Action and Environment Anna Moskwa said the European Commission “confirmed that payment in rubles is unacceptable”.

Representatives from the Baltic states (Estonia, Lithuania and Latvia), Denmark, the Netherlands and Finland have given assurances that they will not pay for Russian gas purchases in rubles.

Arriving at the meeting, Moskwa regretted Russia’s decision to cut gas supplies to Poland and Bulgaria.

“We call for an immediate embargo on Russian oil and gas. It’s time for oil, soon there will be gas,” he said.

Due to the sanctions passed by the EU, the Russian hydrocarbon company Gazprom has begun to circumvent the sanctions, requiring payments to be in Russian currency in a procedure involving the country’s central bank.

The ministers also discussed the gradual cessation of purchases of Russian oil and derivatives, but no decision on the matter was taken at this meeting.

“A new package of sanctions is being prepared,” said Barbarian Pompili, Minister of Ecological Transition of France.

The head of European diplomacy, Josep Borrell, warned on an official visit to Panama that “more Russian banks will come out of Swift”, a crucial platform for international transactions.

Over the weekend, several European diplomatic sources indicated that one of the affected banks will be Sberbank, which accounts for 37% of the Russian market.