Russia ready to continue with energy payments in euros, says Austrian Chancellor

Austria’s gas supply from Russia can continue to be paid for in euros, Russian President Vladimir Putin has told Austrian Chancellor Karl Nehammer in a sign of easing Moscow’s stance towards energy payments in the Russian currency.

The comments from Putin came during his meeting with Nehammer this week, Austrian news agency APA reported on Thursday. Moscow had earlier warned of cutting off gas supplies to Europe unless it pays in roubles in the aftermath of Western sanctions for Russia’s invasion of Ukraine.

Austria gets 80 percent of its natural gas from Russia and opposes an immediate European Union gas embargo on Moscow, pointing out that it is impossible to suddenly switch to alternative suppliers.

Nehammer said he held “very direct, open and tough” talks with Putin near Moscow on Monday about Ukraine and other issues, including energy supplies.

Nehammer also repeated his opposition to a potential gas embargo in an interview  with German news agency DPA, saying it “would mean that both (Austrian) industry and households would suffer serious harm from the non-delivery of that gas".

He explained that the Russian president said that “Russia will deliver the contractually agreed quantities and that payments can continue to be made in euros”.

The European Commission has hardened its stance on the ruble demand from Moscow, saying that those with contracts requiring payment in euros or dollars should stick to it. Nehammer said Austria intends to follow the EU directive – even as Russia appeared to have opened the door to make that possible.

Moscow recently asked foreign buyers of Russian gas to open rouble accounts in state-run Gazprombank, which is not under the same crippling sanctions as many other Russian banks. European gas buyers could thus deposit euro payments and let Gazprombank buy rubles on their behalf – a working solution that Austria has said appears to make continued payment in euros possible.