Putin Shuts Down Rouble Conversion Via Gazprombank

Russian President Vladimir Putin has cancelled the option for buyers of Russian gas to convert currency into roubles at Gazprombank. This move comes amid U.S. sanctions on the bank, complicating payments for European buyers of Russian gas. Russian authorities are working on solutions.

In a significant development, Russian President Vladimir Putin has ordered the cancellation of the option for buyers of Russian gas to conduct currency conversions into roubles at Gazprombank, according to a presidential decree unveiled on Thursday.

This decision comes as U.S. sanctions on Gazprombank, implemented last month, restrict the lender from processing new energy-related transactions, potentially obstructing European customers' ability to pay for Russian gas.

The updated decree details that payments for Russian gas will not be processed via K-type rouble or foreign currency accounts until sanctions against Gazprombank are lifted, with future resumption at the discretion of the Russian president.

(With inputs from agencies.)