The President of Russia has signed an executive order extending a special payment procedure that allows foreign buyers to settle their natural gas commitments in rubles. This amendment to a previous order prolongs the arrangement until December 31, 2025. The original procedure, set to expire on October 1, was initially introduced to allow for payments to be made through Gazprombank, but the new amendment now permits the use of other Russian banks as well.
This extension is a critical measure aimed at ensuring the continuity of gas supplies to foreign nations, providing them with more flexibility in their payment options. The original ruble-for-gas scheme was a response to Western sanctions and required “unfriendly” countries to open special accounts with Gazprombank to facilitate the currency conversion.
By expanding the list of authorized banks, the Kremlin is providing a broader framework for transactions, potentially mitigating the risks associated with sanctions on Gazprombank and ensuring that foreign buyers can meet their contractual obligations.
The move comes as European nations continue to grapple with high energy prices and the ongoing shift away from Russian energy sources. While some countries have successfully diversified their supplies, others remain reliant on Russian gas. This extension offers a temporary reprieve, allowing foreign companies more time to navigate the complex payment landscape and secure necessary licenses.
Ultimately, the amendment underscores Russia’s efforts to maintain its position as a major energy supplier while adapting to the geopolitical and economic challenges posed by Western sanctions.
