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EU accepted Russia’s new terms of gas payments, fearing crisis — paper

The Washington Post emphasized that Russia had stopped its natural gas supplies to Poland and Bulgaria after they refused to pay for it in rubles

WASHINGTON, May 25. /TASS/. Despite their previous rhetoric, the majority of EU countries deemed unfriendly by Russia have accepted Russia’s new terms of gas payments, fearing a new energy crisis, the Washington Post reported.

"European energy companies appear to have bent to Russian President Vladimir Putin’s demand that they purchase natural gas using an elaborate new payment system," the paper wrote, adding that the move was "a concession that avoids more gas shut-offs and also gives Putin a public relations victory."

According to the report, EU nations are in search for ways of reducing their dependence on Russian gas supplies. "In the short term, they are willing to jump through some hoops to avoid an energy crisis," The Washington Post said, adding that it was one of factors that helped to stabilize the ruble.

The paper emphasized that Russia had stopped its natural gas supplies to Poland and Bulgaria after they refused to pay for it in rubles.

"Most European countries have appeared to go a different route, moving away from rhetoric about refusing to be blackmailed and making peace with an arrangement based on the technicalities," the paper said.

"Europe has bought itself some time to ramp up its storage for peak demand periods next winter," it said.

Russian President Vladimir Putin on March 31 signed a decree that set a new payment procedure for Russian gas for buyers from unfriendly countries starting from April 1. These buyers should transfer payments denominated in foreign currencies to accounts at Gazprombank, which will then convert them into rubles at currency exchanges and transfer to the importers’ ruble accounts. In such event, Russia will continue to provide gas to its partners in amounts and at prices stipulated by contracts.