Beate Baron, a spokeswoman for the German economy ministry, said Gazprombank has 10 days to explain details of the procedure, and that the Russian central bank -- currently under Western sanctions -- would not be involved in the transaction. Still, the question of whether the Russian decree undermines sanctions must be agreed at an EU level, according to a German official. By Bloomberg News. Member of. News Oil and Gas. Share Oil and Gas. Peskov said Russia might still swap the payment currency in the future if conditions change.
Updates with German official comments from ninth paragraph. More stories like this are available on bloomberg. Plans Huge Reserves Release. Retrieved 1 May Kommersant in Russian. Archived from the original on 14 February Retrieved 20 February Apolitical Gusinsky.
Archived from the original on 12 February Retrieved 15 January Woods, Richard ed. Financial Times. Archived from the original on 20 February Department of Treasury. Center for Public Integrity. Archived from the original on September 15, Retrieved September 21, The White House. Retrieved 25 February Retrieved April 26, Yahoo News.
Retrieved April 27, Banks portal Language portal. Authority control. ISNI 1. Categories : Banks of Russia Gazprom subsidiaries Companies based in Moscow Banks established in establishments in Russia Government-owned companies of Russia Russian entities subject to the U.
Department of the Treasury sanctions Government-owned banks.
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I know there's an older question here , but Russia has recently clarified after some pushback from the EU capitals what it means by gas payments in rubles. As RT explained :. These are new rules, they need to be followed. Although, I repeat once again, de facto nothing will change for European companies… They will pay, as they used to, in euros, the same currency that is indicated in the contracts.
I'm guessing that one benefit of this scheme might be that since Western companies will be forced to exchange euros to rubles on the Moscow market seemingly at one particular bank , perhaps an arbitrary exchange rate can be imposed on them, making the price vary as Russia sees fit though I'm not sure if the long-term contracts really allow that.
But besides that putative advantage, it seems that instead of the euros going to Gazprom, they'll be left with Gazprombank. If not that, what advantage is there with the euros being kept by Gazprombank instead of Gazprom?
I found an explanation that seems to make most sense to me. It's basically not an issue of how the sanctions have been implemented so far, but how they could be further pushed. By forcing an immediate exchange of the payment to Rubles, the West is deprived of this possibility to freezing the payment s in Gazprombank. Although it hasn't actually tried to do something like this, insofar.
The crucial part seem to be this:. While there is no exchange risk as the importer pays euros, during the period between the transfer of euros to Gazprombank and their exchange into rubles, the European importer bears a counterparty risk. In other words, if the EU were to freeze the EUR payment in Gazprombank after making it , the importer would be considered not payed, according to the new Russian decree.
Also, Russia might to be able to directly change the core price in the contract, but they might try to extract an exorbitant exchange fee:. There is an implicit foreign exchange transaction in the exchange of deposits between the Bank of Russia and Gazprombank. As the price of gas is fixed in euros, the exchange rate at which euros are exchanged into rubles should be irrelevant. However, Gazprombank can charge a fee to the gas importer as commission for the foreign exchange operation.
Normally foreign exchange commissions are extremely low but, as the market for rubles is probably very illiquid, Gazprombank might ask for a hefty commission, de facto increasing the gas price. Sign up to join this community. The best answers are voted up and rise to the top. Stack Overflow for Teams — Start collaborating and sharing organizational knowledge.
Create a free Team Why Teams? Learn more. How does Russia benefit if Gazprombank instead of Gazprom gets to keep the euros? Ask Question. Asked 1 month ago. Modified 23 days ago. Viewed times. Improve this question. Fizz Fizz 3, 12 12 silver badges 24 24 bronze badges. Nobody is obligated to enter into new contracts.
This means Russia will have to give inducements to encourage that the contract be accepted.. We do not use social media channels such as Facebook to advertise our services. September 12, Reinforced EU and US sanctions in respect of a number of Russian companies and banks do not affect operations and financial standing of Gazprombank. New edition of the EU and USA sanctions prohibit providing new financing to the Bank with maturity exceeding 30 days, versus 90 days previously.
Gazprombank hereby states that it is fulfilling its obligations to clients, investors, depositors and lenders in full and on time. Rouble and foreign currency settlements, including those processed via payment cards of international payment systems, are being processed duely and on time.
Gazprombank comments on EU restrictive measures. August 1, In its new regulation issued on 31 July , the Council of the European Union imposed certain restrictive measures on access to EU capital markets by major Russian banks, including Gazprombank. Read Gazprombank comments on EU restrictive measures. July 17, Sanctions declared by the USA administration against certain Russian companies and banks, including Gazprombank, contemplate only restrictions on the access by US investors to long-term over 90 days debt instruments of the Gazprombank issued after 16 July Such restrictions do not affect the operations of Gazprombank and the Bank is operating in normal regime.
Settlements of Rouble and foreign currency accounts of the clients are being processed without delay, including those processed via payment cards of international payment systems.
Exchange rates and share prices | Gazprombank offers a full range of For more information, call the unified help desk of Gazprombank 8 () Gazprombank offers a wide range of services in the foreign exchange market, Hedging of currency risks with the help of operations in the Forex market. Special ruble and foreign currency type "K" accounts are opened for foreign buyers in Gazprombank, which is the government's authorized.