Germany Says Russian Euro Account Won’t Violate EU Gas Rules

(Bloomberg) -- German utility Uniper SE wouldn’t breach European Union guidelines if it opened an account in euros in Russia to pay for gas, according to a spokesman for the economy ministry in Berlin.

“For us, the account number doesn’t matter, or the question of whether one or two accounts are opened in one place,” spokesman Stephan Haufe said Friday at a regular news conference.

“For us, it matters whether the payment happens in euros and dollars, as it is laid out in the contracts,” he added.

President Vladimir Putin has decreed that buyers set up two accounts with Gazprombank --  one in a foreign currency and another in rubles -- and the Russian lender would convert the payments into the local currency.

The EU said last week the arrangement would be a breach of sanctions on Russia -- though it also left the door open to exemptions. Officials explicitly said that opening a ruble account at Gazprombank would violate EU sanctions.

Uniper has said it’s examining the option of paying for Russian gas in euros into an account in Russia rather than in Europe.

The German utility believes that there could be a solution to the question of how the funds could then be converted into rubles.

The European Commission said opening an account in euros would be in line with the EU rules as long as the company declares the payment complete after the euro funds clear.

Slovakia cast some doubt on that on Friday, saying Gazprombank automatically opened new accounts in euros and rubles for European importers, and to activate them, it’s demanding consent for the Russian central bank to convert currencies. That could breach EU sanctions.

Gazprom PJSC halted gas supplies to Poland and Bulgaria on Wednesday, making good on a threat to cut supplies if payments aren’t made in rubles.

German Economy Minister Robert Habeck warned that the risk of more cutoffs must be taken seriously. It’s still not clear how Russia will react if companies pay in euros,  he added.

(Updates with additional details)

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