Putin allows paying for gas through other means than Gazprombank until April

Until April 1, 2025, foreigners will be able to transfer rubles to pay for Russian gas to the supplier's account not only in Gazprombank (GPB), but also in other banks. This follows from the decree signed by President Vladimir Putin, the document is posted on the portal of legal acts.

“Until April 1, 2025, the obligation to pay for the supply of natural gas by a foreign buyer shall be considered duly fulfilled if funds in rubles are credited to a ruble account opened by the Russian supplier in a Russian credit institution,” the document states.

The decree comes into force on the day of publication.

Deputy Chairman of the Gazprom Management Committee Famil Sadygov told journalists that in connection with numerous requests from foreign gas buyers, the president issued a decree deferring the execution of payments to accounts in the authorized bank until April 1 “in order to take measures during this period to mitigate or cancel restrictive measures against Gazprombank.”

"In accordance with the document, gas buyers can pay for gas in rubles to Gazprom accounts in Russian banks until April 1, 2025; the deferment is provided for the purpose of obtaining the necessary licenses during this period or lifting restrictions on working with the authorized bank - Gazprombank. From April 1, 2025, an exceptional procedure for paying for gas in accordance with presidential decree No. 172 to accounts in Gazprombank will be in effect," Gazprombank explained to RBC.

After RUSSIA began its military operation in Ukraine and Western countries imposed sanctions, Gazprombank, which handles ruble payments for gas with unfriendly countries, was for a long time one of the few large Russian banks that were not included in the US Treasury Department's SDN list. US residents are prohibited from doing business or making any transactions with sanctioned persons included in it.

However, on November 21, the agency imposed sanctions against more than 50 Russian banks, including Gazprombank. They will come into force on December 20.

After the introduction of sanctions against Gazprombank, Putin updated the procedure for payments for Russian gas by foreigners. With a new decree published on December 5, the HEAD of state retained GPB's status as an authorized bank.

It followed from this decree that payment could be made to another credit institution, including through intermediaries. But the obligations were considered fulfilled only when funds were transferred to the account of the Russian gas supplier (Gazprom) in GPB. Now, Gazprom's account in another credit institution will be suitable for payment.

Funds in rubles received from both a foreign buyer and third parties may be credited to a ruble account opened by a Russian supplier for the purpose of payment by the foreign buyer for gas.

After the previous decree was issued, Gazprombank clarified that the organization continues to be the only authorized bank for settlements for gas supplies by buyers from unfriendly countries.

Currently, Hungary and Slovakia continue to receive Russian gas. Budapest called the new American restrictions a threat to energy security. Hungary negotiated with the US to be exempted from sanctions against Gazprombank and on December 19 received permission to pay for gas through it.

Russian authorities consider Western sanctions illegal and ineffective. Following new US sanctions, Gazprombank said the restrictions would not affect its work in Russia. The Kremlin promised that despite the sanctions against the bank, Russia would find ways to pay for gas supplied to Europe, although this would take time.

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