French Energy Company Confirms Readiness To Convert To Russian Payment System

The French energy company Engie has taken all precautions to make its payments for Russian gas supplies subject to EU sanctions, the company said in its financial report released on Tuesday.

The company said it had been in talks with Russian energy giant Gazprom regarding the Russian request to modify its payment scheme for Russian gas supplies.

"The Group has taken the necessary steps to be ready to execute on its payment obligations, as long as it is compliant with European sanctions' framework and does not modify the balance of risks for ENGIE," it said.

In late April, Engie said it had not yet decided on the issue of gas payments in rubles.

The company also assumes there will be no disruption in Russian gas supplies until the end of 2022.

On March 31, Russian President Vladimir Putin said 'unfriendly countries' must now pay for gas supplies in rubles after they froze Russian Central Bank currency assets over the Ukraine war, which began on Feb. 24.

Putin said that by freezing Russia's assets in dollars and euros, the West had effectively seized payments for fuel deliveries and taken them for free. He said Russia could not take the risk of continuing trade in euros and dollars as new payments could be frozen as well.

The country introduced a new payment system for gas imports, requiring a bank account in Gazprombank where payments in euros or dollars would be converted to rubles. -