MOSCOW (Reuters) -
Russia will allow countries to pay debt settlements for gas supplies in a foreign currency, according to changes made by President Vladimir Putin to his earlier decree on rouble payments for gas.
The document also clarifies that the debt settlement does not automatically mean the resumption of gas supplies. It also does not alter the previously stated requirements for a foreign buyer of Russian gas to pay for it in roubles.
Putin signed the decree in March, forcing European customers to open rouble bank accounts with Gazprombank and pay in Russian currency if they wanted to continue receiving Russian gas.
The new document proposes transferring the funds intended for settling the debt to a designated foreign currency account of the Russian supplier. Once they are credited to the account, the debt is considered to be paid. The new decree stipulates, however, that the repayment of gas debt does not imply that Russia will resume supplies, unless the buyer agrees to pay for future deliveries in rubles.
The reaction to converting gas payments to rubles was initially varied, with some arguing that the scheme could not be considered legal as there is no provision for changing the currency of payment in gas contracts. Several countries, including Poland and Bulgaria, said they would not agree to the scheme, and were cut off from Russian supplies. However, many Western companies ended up accepting the Russian terms.