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German industry provides restrained reaction to new gas payment system

The energy industries expects that it will continue, BDEW Managing Director Kerstin Andreae underscored

BERLIN, April 1. /TASS/. The German Association of Energy and Water Industries (BDEW) provided a restrained reaction to the new system of payment for natural gas proposed by Moscow, BDEW Managing Director Kerstin Andreae told the DPA news agency Thursday.

"We share the opinion of [German Chancellor Olaf Scholz], that the procedure must be outline very clearly first, before any further decisions could be made," Andreae said. "Furthermore, we must preserve unity within the EU and with all G7 countries on this issue," she added, noting that the energy industry will work in close cooperation with the German Federal Government.

"Currently, contracts are signed in euros or dollars. And the energy industries expects that it will continue," Andreae underscored.

At the same time, she noted that the new Moscow statements contain no specifics about how gas shipments must be paid for, and thus confirm the right course of action of the German Ministry of Economy and Environment on implementation of the emergency plan for cessation of energy supplies from Russia.

"There are not supply problems right now, but the Federal Government and the industry is actively getting ready to provide all stakeholders with a clear card of rights and obligations in case of disruption of supplies," Andreae said.

On March 31, Russian President Vladimir Putin signed an order that defines a new procedure of payment for natural gas supplies to unfriendly countries. According to the presidential decree, such clients will have to open special ruble accounts and foreign currency accounts in Gazprombank. Clients from unfriendly states will transfer foreign currency to Gazprombank, which will then buy rubles on exchanges and transfer them to the importers’ special ruble accounts. Then, the clients will use these rubles to pay for gas shipments.