Bypassing sanctions, EU plans to buy Russian gas
Front lines shift in Donbas as Ukraine mounts counter-offensive
The European Union is set to offer its gas importers a solution to avoid a breach of sanctions when buying fuel from Russia and still effectively satisfy President Vladimir Putin’s demands over payment in rubles.
In new guidance on gas payments, the European Commission plans to say that companies should make a clear statement that they consider their obligations fulfilled once they pay in euros or dollars, in line with existing contracts, according to people familiar with the matter. The EU’S executive arm told the governments that the guidance does not prevent companies from opening an account at Gazprombank and will allow them to purchase gas in accordance with EU sanctions following Russia’s invasion of Ukraine, the people added.
European companies have been scrambling for weeks to figure out how they can meet Moscow’s demand and keep the crucial gas flowing without violating sanctions on Russia’s central bank. Putin said on March 31 that if payments aren’t made in rubles, gas exports would be halted. Europe depends heavily on the Russian fuel to heat homes and power industry.
Putin’s demands to pay in rubles have divided EU member states, highlighting the dependence of some nations on Russian imports.
Finland is applying to join defence alliance NATO in a historic move after neighbouring Russia’s invasion of Ukraine ended the Nordic nation’s long-held preference for military non-alignment.
The formal decision was made on Sunday and requires sign-off by the parliament, President Sauli Niinisto said at a press conference in Helsinki.
The front lines in Ukraine had shifted on Sunday as Russia made advances in the fiercely contested eastern Donbas region and Ukraine's military waged a counteroffensive near the strategic Russianheld city of Izium.
Near the northeastern city of Kharkiv, where Ukrainian forces have been on the attack since early this month, commanders said they believed Russia had been withdrawing troops to reinforce positions around Izium to the south.