Page 4 - EurOil Week 01 2023

EurOil COMMENTARY EurOil

Kremlin lets gas buyers pay

in euros as energy crisis

shows signs of easing

Moscow has ended its restriction on what currencies buyers can use to

settle outstandiing debts for Russian gas.

RUSSIA RUSSIA has amended the law to allow natural pipeline over the summer.
gas buyers in so-called “unfriendly” Western The new decree, amending the previous one,
WHAT: countries to pay their debts for supply in for- does not provide grounds for Russian gas sup-
Russia has amended law eign currencies, in a possible sign that Moscow ply to be resumed to those buyers that had that
allowing "non-friendly" is looking to scale back its energy war against supply cut off. Instead, it only refers to outstand-
buyers to settle their Europe. ing debts for supplies delivered after the first
outstanding debts for Russian President Vladimir Putin issued a decree came into force. But it may also suggest
Russian gas in currencies decree at the end of March requiring Gazprom’s the Kremlin is seeking a rapprochement in Rus-
other than the ruble. customers in “unfriendly” countries to pay for sia-EU energy ties.
their gas supply in rubles. The decree stated that
WHY: those buyers must set up accounts at Gazprom- Russia loses market share in Europe, and
The move could be a bank, to transfer their euro and dollar payments, China fails to make the difference
signal that the Kremlin as stipulated in supply contracts, for conversion Moscow has seen an unprecedented loss of its
is prepared to ease into rubles before being sent to Gazprom. market share in Europe over the past year. While
its energy war against The decree divided the EU, with some mem- EU authorities have lauded this as a result of
Europe. ber states such as Poland, Bulgaria, Finland, the their own efforts to cut ties with Russian energy,
Netherlands and Denmark refusing to comply it is Moscow that has forced the reductions, in
WHAT NEXT: and subsequently having their supply cut off. an attempt to put pressure on Europe to make
A very mild winter Others, including Germany, agreed to meet concessions in the Ukrainian conflict.
means Russia is far less the new terms. Russian pipeline gas supply to First, as previously noted, the Kremlin’s
well-positioned to put Europe shrank, only to drop further after Gaz- decree on payments for gas in rubles led to supply
pressure on Europe. prom curtailed supply via the Nord Stream 1 being cut off to some buyers. Secondly, Gazprom

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