Russian President Vladimir Putin.
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- Russia’s Gazprombank turned down a ruble payment from a trading firm Germany had seized from Moscow, Bloomberg reported.
- The payment was for some April and May gas deliveries to Germany and Austria.
- On Wednesday, Russia halted gas supplies for Poland and Bulgaria.
Russia’s Gazprombank turned down a ruble payment from a trading firm Germany had seized from Moscow, sources told Bloomberg.
The payment for some April and May gas deliveries to Germany and Austria was rejected even though the trading firm — Gazprom Marketing & Trading (GM&T) — offered to pay in rubles, as Russian President Vladimir Putin has demanded.
GM&T previously was controlled by the German subsidiary of Russian state-run Gazprom, but Germany took over the unit in April. Now, the rejected ruble payment suggests Moscow looks to shut out a German-controlled GM&T.
The trading firm, which is among many that import gas to Germany, is still in talks with Gazprombank to push the transaction through, sources told Bloomberg.
The standoff comes as the Kremlin uses its energy exports to retaliate against Western nations that have imposed sanctions on Russia for its war on Ukraine.
On Wednesday, Moscow halted natural gas supplies to Poland and Bulgaria, sending European gas prices up 28% and adding to concerns that Putin could target other nations on the continent. Gazprom said the reason for the gas halt is that both countries failed to pay in rubles.
Meanwhile, four European gas buyers have paid Russia in rubles for supplies, complying with Moscow’s demands, according to Bloomberg, which also said 10 European countries have opened accounts at Gazprombank to make ruble payments.
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