Gazprom reassures its Europe clients ‘they can still buy gas’

Bloomberg

Gazprom has written to its European clients seeking to reassure them that they can keep paying for gas without breaching sanctions, the latest indication that Russia may be trying to find a way to keep the gas flowing.
European companies are scrambling to work out how they can keep buying Russian gas after Moscow demanded payments be made in rubles and the European Commission said such a move would breach sanctions. Poland and Bulgaria have already been cut off and other countries’ payment deadlines fall later this month.
In a letter seen by Bloomberg, Gazprom told clients that a new order published by the Kremlin “clarifies the procedure” set out in the initial decree on ruble payments. It’s not clear if the new order will be enough to assuage the concerns of the European Union, which has said that setting up an account in rubles, and dealing with the central bank would break sanctions. The EU had no comment.
The new order says that the foreign currency received from buyers is to be exchanged to rubles via accounts with Russia’s National Clearing Center.
Gazprom said in the letter that the order ensures transparency of the cash flows from the foreign buyers and excludes the possibility of any “third party” being involved in the settlements. The procedure as set out appears to exclude the sanctioned central bank.
Gazprom didn’t immediately respond to a Bloomberg request for a comment.
President Vladimir Putin threw gas markets and policy makers into disarray when he called for gas to be paid in rubles. Poland and Bulgaria were first to be cut off for refusing to engage with the new terms, but several European companies continue to look for workarounds, seeking guidance from the European Commission on what is allowed.
The EU issued some guidelines on April 22 and has promised to respond to companies’ requests for more clarity.