Bloomberg reported that Russia’s Gazprombank rejected a ruble payment from a trading business Germany had seized from Moscow.
The payment was for gas deliveries to Germany and Austria in April and May. Russia cut off gas supplies to Poland and Bulgaria on Wednesday. According to Bloomberg, Russia’s Gazprombank turned down a ruble payment from a trading business that Germany had seized from Moscow. Even when the trading business — Gazprom Marketing & Trading (GM&T) — offered to pay in rubles, as Russian President Vladimir Putin asked, the payment for some April and May gas exports to Germany and Austria was denied.
GM&T was formerly operated by a German subsidiary of Gazprom, the Russian state-owned energy company. Still, Germany regained control of the firm in April. The rejection of a ruble payment now shows that Moscow is attempting to lock off GM&T, which Germans own.
Russia Stands Against Western Nations
The trading business, which is one of many that imports gas to Germany, is still in discussions with Gazprombank to complete the transaction. The deadlock occurs as Russia uses its energy exports to retaliate against Western nations that have placed sanctions on Russia due to its conflict in Ukraine. Moscow cut off natural gas supplies to Poland and Bulgaria on Wednesday. This will raise European gas prices by 28%, and fears that Putin may target more countries on the continent.
According to Gazprom, the gas supply had to halt because both nations failed to pay in rubles.
Meanwhile, four European gas customers have paid Russia in rubles for deliveries, complying with Moscow’s requests. Ten European nations have reportedly created accounts with Gazprombank to handle ruble payments.