OMV talks to Gazprom on rouble demand, Austria says it will pay in euros

Austrian energy firm OMV and Russia's Gazprom have had initial contact about paying for natural gas in roubles, an OMV spokesperson said on Friday, as Austria stressed there was no basis for payment in any currency other than euros or dollars. Russian President Vladimir Putin is demanding foreign buyers pay for gas in roubles from Friday or risk having their supplies cut off.

Austrian energy firm OMV and Russia's Gazprom have had initial contact about paying for natural gas in roubles, an OMV spokesperson said on Friday, as Austria stressed there was no basis for payment in any currency other than euros or dollars.

Russian President Vladimir Putin is demanding foreign buyers pay for gas in roubles from Friday or risk having their supplies cut off. With weeks left before bills are due, governments in Europe, which relies on Russia for more than a third of its gas, are talking to energy companies about that demand. The spokesperson said on Friday morning that OMV was awaiting written information from Gazprom. By Friday night, Austrian Energy Minister Leonore Gewessler told national broadcaster ORF the information had arrived.

"Documents have been handed over. They are currently being examined in detail by OMV but according to what we know at present, it is the case that payments can continue to be made in euros," Gewessler told ORF. On Thursday, Moscow decreed foreign buyers of Russian gas would have to open rouble accounts in state-run Gazprombank from Friday or risk being cut off.

Gazprombank has been spared the harsh sanctions imposed on other Russian banks so European gas buyers could open an account with it and let it buy roubles on their behalf. Gewessler said that arrangement was why payment in euros could continue, though she did not mention Gazprombank by name. The Austrian state owns 31.5% of OMV.

The European Commission said on Friday those with contracts requiring payment in euros or dollars should stick to that. Austrian Chancellor Karl Nehammer, whose country gets 80% of its gas from Russia, said it would. "The contracts are long-term ones running until 2040, they are in dollars and euros and we will stick to them," he told ORF.