Putin Revokes Gazprombank Payment Requirement Amidst U.S. Sanctions

Russian President Vladimir Putin has cancelled a mandate requiring foreign buyers of Russian gas to pay via Gazprombank, following U.S. sanctions imposed on the lender. The sanctions were aimed at stopping new energy-related transactions, impacting European customers. Putin's decree allowed payments in roubles, complicating the situation further.

In a significant policy shift, Russian President Vladimir Putin has rescinded the requirement for international purchasers of Russian gas to make payments through Gazprombank, a state-controlled financial institution.

The move comes in response to U.S. sanctions targeting Gazprombank, which were implemented to halt any new transactions related to energy, effectively creating a payment blockade for European customers reliant on Russian gas.

Initially instated in March 2022, the decree by Putin had required gas payments to be made in roubles via Gazprombank. The recent amendment leaves uncertainty around future payment methods, with Russian officials seeking solutions and stipulating that payments will not be conducted until sanctions are lifted. Despite decreased volumes, countries like Turkey and Hungary continue their gas imports from Russia.

(With inputs from agencies.)