VET:CC - European Commission says EU companies can pay for gas in rubles

The European Commission said Friday that EU companies may be able to comply with Russia's proposed gas payment system, without running afoul of sanctions against Moscow. Shortly following the war in Ukraine, President Putin issued a decree mandating that Russian gas exports to "unfriendly" nations be paid for in rubles. Several EU leaders pushed back on the decree, indicating it would mark a contract violation, and insisting that gas transactions be settled in euros or dollars. Friday's comment from the Commission could bolster Russia's domestic currency market, which has now fully recovered from the invasion-induced selloff. The EU has proposed banning both Russian coal (BTU) and Russian oil imports (USO) (XLE) in coming months; however, the concession on currency payments likely points to continued Russian gas flows (EQNR) (SHEL) (VET) (NRT) for the duration of 2022.

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European Commission says EU companies can pay for gas in rubles