The European Union and Russia are at risk of triggering a de facto embargo on Russian gas after the bloc’s lawyers drafted a preliminary finding that the mechanism President Vladimir Putin is demanding for payment in rubles would violate EU sanctions.
Countries including Germany are still scrutinizing an initial EU assessment that Putin’s ruble demand would breach sanctions imposed over Russia’s invasion of Ukraine. The Netherlands has told its energy firms to refuse the new payment system in light of the EU legal analysis.
Russia could still provide clarifications or adjustments to its decree that could affect how the EU and companies move forward. Moscow has been pulling in roughly 1 billion euros a day from Europe in energy purchases, which has helped insulate it from the impact of EU sanctions.
