Ten more European gas buyers open ruble accounts for payments

[oil&gas]

May 12, 2022

Ten more European gas buyers have opened accounts in Gazprombank JSC, doubling the total number of clients preparing to pay in rubles for Russian gas as President Vladimir Putin demanded.

A total of twenty European companies have opened accounts, with another 14 clients asking for the paperwork needed to set them up, the person said, speaking on condition of anonymity to discuss confidential matters. He declined to identify the companies.

European buyers have been struggling for weeks to figure out how they can meet Putin’s order to pay for Russian gas in rubles starting April 1 and not fall afoul of European Union sanctions imposed over Putin’s invasion of Ukraine.

Under the new mechanism, clients have to open two accounts: one in foreign currency and one in rubles in Gazprombank. After Poland and Bulgaria rejected these terms, Gazprom PJSC halted gas flows to them in late April.

As deadlines for payment for April supplies loom later this month for major West European buyers, Russia has moved to address EU concerns that the payment mechanism may violate sanctions.

The person close to Gazprom said the current terms mean that the transaction is effectively completed once the buyer pays foreign currency to Gazprombank, since the subsequent conversion to rubles is automatic and doesn’t involve Russia’s central bank, which is subject to EU sanctions.

The bloc so far hasn’t said whether the Russian changes allay its concerns, but Italian Prime Minister Mario Draghi said Wednesday companies will be able to pay for gas in rubles without breaching the restrictions.

“Most of the gas importers have already opened their account in rubles with Gazprom,” he told a press conference. He said that Germany’s top gas importer had already paid in rubles.

Like Italy, Germany is a massive consumer of Russian gas.

The person close to Gazprom said the number of customers who’ve paid in rubles remains at four, the same as late last month. Payments from other buyers are due later this month, he said.

Ten more European gas buyers open ruble accounts for payments

Ten more European gas buyers have opened accounts in Gazprombank JSC, doubling the total number of clients preparing to pay in rubles for Russian gas as

english.alarabiya.net

 

[Frankfooter]

Oil & gas despots are the worst.
If its not climate change, its war, if its not war its just pollution.

1 in 5 premature deaths globally in 2018 caused by fossil fuel pollution: study - National | Globalnews.ca

The authors said they hoped the study would provide further impetus for governments to accelerate a shift to cleaner energy.

globalnews.ca

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[K Douglas]

Biden is missing the boat as usual. All to appease his left wing radical base of eco terrorists.

 

[toguy5252]

Just highlights the need to develop more renewables and reduce dependence upon Russia S.A. etc. yea yea I know the US was approaching energy independence but this is a problem which affects the entire free world. US independence would not change the European needs one bit. The US imports very little oi from Russia. Although the transition to renewables and cleaner energy is ultimately inevitable there is no doubt that for the time being oil is a necessary evil and it is therefore also important to develop more refining capacity. Much of the price level currently is dues to a lack of refining capacity and the ability to match the kinds of oil needed with the refining capacity available.

Abandoning environmental concerns with offshore drilling etc. is not the answer. The short term gain is not worth the long term pain.

 

[Frankfooter]

Biden is missing the boat as usual. All to appease his left wing radical base of eco terrorists.

Eco terrorists?

 

[oil&gas]

Just highlights the need to develop more renewables and reduce dependence upon Russia S.A. etc. yea yea I know the US was approaching energy independence but this is a problem which affects the entire free world. .............................................................

The U.S. will go from nearly energy independent to desperately energy dependent
in a few years when production collapse of its shale oil fields commence.
By 2030 the year 50% carbon emission reduction is projected the U.S. will have to scramble
for replacement of the loss of several million barrels of daily oil production. Or it won't have to if
the emission reduction target is to be adhered to.

 

[oil&gas]

Abandoning environmental concerns with offshore drilling etc. is not the answer. The short term gain is not worth the long term pain.

This should have been told to Steven Guilbeault and Trudeau before
they approved the Bay Du Nord project.

 

[toguy5252]

This should have been told to Steven Guilbeault and Trudeau before
they approved the Bay Du Nord project.

For some reason you keep ignoring my comments about pragmatism and that the reliance upon oil is not simply disappearing overnight. Oil will be with us for many years however, there will be a substitution effect with renewables over time. That is simply and undeniable fact. In terms of the timing of it I have no idea.

 

[toguy5252]

The U.S. will go from nearly energy independent to desperately energy dependent
in a few years when production collapse of its shale oil fields commence.
By 2030 the year 50% carbon emission reduction is projected the U.S. will have to scramble
for replacement of the loss of several million barrels of daily oil production. Or it won't have to if
the emission reduction target is to be adhered to.

I do not agree. The search for economic renewables will accelerate and there will be a substitution over time. in the interim as the price of oil goes up and stay up more resources will come on line. I do not know whether the green targets are realistic or not and they may be only aspirational but as things go that is a commendable aspiration.

 

[oil&gas]

For some reason you keep ignoring my comments about pragmatism and that the reliance upon oil is not simply disappearing overnight. Oil will be with us for many years however, there will be a substitution effect with renewables over time. That is simply and undeniable fact. In terms of the timing of it I have no idea.

Do you seriously believe oil is going to disappear in the near future if we
don't start development of this deep water field 500 km off the coast of NFL
which is not going to produce any oil until 2028? Without the project oil
sands production in Canada will still continue increasing into the 2030's and
beyond! Oil sands reserves are enormous.

If pragmatism in you dictionary means we have to squeeze our oil resources
to the last drop so long as it is profitable then I am in agreement with your support
of a project as potentially damaging to the environment as Bay Du Nord.

 

[oil&gas]

I do not agree. The search for economic renewables will accelerate and there will be a substitution over time. in the interim as the price of oil goes up and stay up more resources will come on line. I do not know whether the green targets are realistic or not and they may be only aspirational but as things go that is a commendable aspiration.

The search for renewable energy resources will accelerate. The
more important issue to consider is whether the capital required
for development of renewable energy resources will accelerate.

Picture this scenario of Trudeau and Steven Guilbeault had rejected
Bay Du Nord development. Do you think they would succeed in getting
Equinor or some other energy giants to invest 12 billion in offshore
wind power development in NFLD?

 

[Frankfooter]

Do you seriously believe oil is going to disappear in the near future if we
don't start development of this deep water field 500 km off the coast of NFL
which is not going to produce any oil until 2028? Without the project oil
sands production in Canada will still continue increasing into the 2030's and
beyond! Oil sands reserves are enormous.

If pragmatism in you dictionary means we have to squeeze our oil resources
to the last drop so long as it is profitable then I am in agreement with your support
of a project as potentially damaging to the environment as Bay Du Nord.

Loading…

www.cbc.ca

 

[toguy5252]

Do you seriously believe oil is going to disappear in the near future if we
don't start development of this deep water field 500 km off the coast of NFL
which is not going to produce any oil until 2028? Without the project oil
sands production in Canada will still continue increasing into the 2030's and
beyond! Oil sands reserves are enormous.

If pragmatism in you dictionary means we have to squeeze our oil resources
to the last drop so long as it is profitable then I am in agreement with your support
of a project as potentially damaging to the environment as Bay Du Nord.

Did you read my post? I said the opposite.

 

[toguy5252]

The search for renewable energy resources will accelerate. The
more important issue to consider is whether the capital required
for development of renewable energy resources will accelerate.

Picture this scenario of Trudeau and Steven Guilbeault had rejected
Bay Du Nord development. Do you think they would succeed in getting
Equinor or some other energy giants to invest 12 billion in offshore
wind power development in NFLD?

Change will happen incriminatory and it has started. It is not like turning on a light switch. it may be necessary for governments ti make investments by way of direct investment tax credits or whatever but it will happen.