Eni Spa, an Italian energy conglomerate, is ready to do business with Russia, potentially signaling a weakening of Europe’s united stance against Moscow.
The energy corporation is ready to open ruble accounts at Gazprombank JSC, a recent Bloomberg report has said.
According to those acquainted with the situation, this move could allow Eni to comply with Vladimir Putin’s requirement that gas be purchased in local currency, which is a precautionary action taken by the Russian president.
Meanwhile, Ursula von der Leyen, European Commission President advised corporations on Wednesday not to give in to Russia’s demands, saying that doing so would be a violation of sanctions.
Payment in rubles, according to the European Union (EU), would violate sanctions and increase Russia’s hand.
Companies, on the other hand, are looking for workarounds, and the EU’s own guideline from last week appears to encourage them to do so.
This is evident as Eni is making preparations, as it continues to seek clarification from Italian and European authorities on what it is permitted to do, according to sources familiar with the situation.
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“Eni is also seeking more clarity on the guidelines and will comply with sanctions. The Italian company hasn’t used the new mechanism and has so far only paid in euros. The next round of payments isn’t due until the second half of May,” the people said.
In the same vein, Germany’s Uniper SE, a major buyer of Russian gas, has stated that it believes it can continue to do so without violating sanctions.
Recall that, just hours after Gazprom PJSC cut off flows to Poland and Bulgaria for failing to comply with the new terms, Bloomberg reported that four European buyers had already paid in rubles and 10 had opened the Gazprombank accounts required to comply with the new rules. Von der Leyen’s response was clear.
“Companies with such contracts should not accede to the Russian demands,” von der Leyen said. “This would be a breach of the sanctions so a high risk for the companies.”
However, as payment deadlines approach, companies and governments must decide whether to accept Russian demands, thereby strengthening Moscow in its war in Ukraine, or risk the prospect of domestic gas rationing.
According to people familiar with the discussions, several EU nations were pushing for clearer guidance from the bloc behind closed doors on Wednesday, claiming that the current advice is too ambiguous.
A number of countries want the commission to state unequivocally that buyers have no option but to comply with the Kremlin’s demands.
Poland claimed that Russia was using the selective interpretation of the Russian decree to undermine EU solidarity.
In addition, the country has refused to accept the new terms, prompting Gazprom to halt gas flows on Wednesday.
Before the Ukraine war, the EU has been divided between countries like Poland that take a more aggressive stance against Russia and those that want to protect energy supplies.
