EU energy ministers in emergency talks after Russia makes gas cuts
The EU is preparing to impose a ban on Russian oil imports by the end of the year
European Union energy ministers are holding emergency talks Monday in an effort to deliver a united response to the Kremlin's insistence that European countries purchase Russian fuel in rubles if they wish to avoid their energy supply being cut off.
This comes after Russia ended the transport of gas supplies to Bulgaria and Poland last week following the two nations' refusal to accept Moscow's demand to pay in rubles.
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European Union flags fly outside the European Commission headquarters in Brussels, Belgium, April 10, 2019. REUTERS/Yves Herman/File Photo (REUTERS/Yves Herman/File Photo / Reuters Photos)
The two countries already developed plans to stop using Russian gas this year and have said they can handle the cutoff of gas supply. Concerns have been raised that other EU countries could be next, including gas-reliant Germany.
Several European-based companies are coming up on gas payment deadlines later this month, according to a report from Reuters, which stated that EU nations have a need to clarify if energy companies can continue purchasing the fuel without violating the EU's sanctions against Russia over its war on Ukraine.
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A worker at an oil field owned by Bashneft, Bashkortostan, Russia, in this January 28, 2015 file photo. (REUTERS/Sergei Karpukhin/Files / Reuters)
Russia has demanded that foreign gas buyers deposit euros or dollars into an account at the private Russian bank, Gazprombank, which would then convert the currency into rubles.
The EU's executive branch, the European Commission, has told its members that conceding to Russia's demands could breach EU sanctions. The commission also suggested countries could make payments in compliance with sanctions if they deem transactions completed after having been made in euros but before the currency is converted into rubles.
But Russia said Friday that a payment is not complete until the conversion to rubles is finished.
Bulgaria and Poland have thus far resisted Russia's demand, but Germany has indicated it is on board with the commission's loophole. Hungary has said countries can participate in Russia's scheme.
According to the Centre for Research on Energy and Clean Air, EU countries have funneled more than 45 billion Euros, or $47.43 billion, to Russia for gas and oil since the Feb. 24 invasion of Ukraine.
Russia supplies 40% of EU fuel and 26% of its oil imports. Some countries have so far resisted an immediate end to Russia's gas imports over concerns about its impact on their respective economies.
The EU is looking to impose a ban on Russian oil imports by the end of the year, diplomats have said, according to Reuters.
On Monday, EU ministers will talk about the need to obtain non-Russian fuel supplies and fill storage. Ambassadors will also speak at a meeting Wednesday on a sixth package of EU sanctions against Russia.
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Later this month, the commission will announce plans to end Europe's dependency on Russian fossil fuels by 2027. This effort will include the expansion of renewable energy.
Reuters contributed to this report.