Russian President Vladimir Putin has changed laws on how foreign buyers can pay for Russian gas following recent U.S. sanctions.
Previously, Russian law required foreign buyers to pay for gas products via Gazprombank exclusively, per a decree Putin issued in March 2022.
The U.S. on Nov. 21 imposed new sanctions targeting dozens of Russian banks, including Gazprombank. Washington had avoided sanctioning Gazprombank in the past in order to allow European countries to continue paying for Russian gas supplies.
Gas buyers will now be unable to purchase Russian energy products through Gazprombank accounts until the sanctions are lifted.
According to Putin's new law, gas purchases are no longer tied to Gazprombank. Gas payments can also be settled by offsetting mutual debts, as an alternative to cash payments.
Following the U.S. sanctions, Hungary, a Kremlin-friendly state, requested a sanctions waiver to further continue payments for Russian natural gas imports via Gazprombank. Hungarian Foreign Minister Peter Szijjarto called the new restrictions a "threat to energy security."
The latest U.S. sanctions are intended to close one of Russia's few remaining avenues for international banking, barring Gazprombank from conducting transactions in dollars.
According to the Financial Times, Russia has used Gazprombank to purchase military equipment, pay soldiers, and compensate the families of those killed in the war in Ukraine.
Tim Zadorozhnyy
