US making new attempt to block Russian gas exports to EU – Kremlin
The latest round of US sanctions against Russian financial institutions, which specifically target Gazprombank, is an attempt to block Russia’s gas supplies to the EU, Kremlin spokesman Dmitry Peskov stated on Friday. The lender is Russia’s primary bank for energy-related transactions.
Peskov warned that Moscow would respond to restrictions with countermeasures, though he did not specify what they would entail.
The Kremlin spokesman’s remarks follow an announcement by the US Office of Foreign Assets Control (OFAC) on Thursday, which said Gazprombank and six of its international subsidiaries had been added to its sanctions blacklist. Gazprombank had already been sanctioned by the UK and Canada shortly after the escalation of the Ukraine conflict in 2022. However, the US had previously avoided placing restrictions on the lender as it was used by EU states to pay for Russian gas.
When asked whether the Kremlin viewed sanctions on Gazprombank as an attempt to jeopardize supplies of Russian gas to Europe, and whether Moscow planned any response, Peskov replied: “The answer is ‘Yes’ to both questions.”
He noted that Russian authorities were already working on ways to alleviate the problems that the new restrictions could cause Russia and its foreign gas buyers.
“Of course, we’ll find options. It is impossible to introduce completely blocking measures against a country like Russia. It may take some time, but a solution will still be found,” Peskov said.
The new measures mean Gazprombank can no longer carry out transactions that involve the dollar-based financial system. Gazprombank earlier said that sanctions would not affect its operations within Russia, but warned that its UnionPay cards may stop working outside the country.
Apart from Gazprombank, the new US restrictions also targeted more than 50 small-to-medium Russian lenders, some 40 securities registrars, and 15 financial officials.
After the escalation of the Ukraine conflict in 2022, the EU declared the elimination of its reliance on Russian energy to be its top priority. Many member states, including Poland, Bulgaria, Finland, the Netherlands, and Denmark, voluntarily halted their imports. However, several EU nations, including Austria, Hungary, Slovakia, the Czech Republic, and Italy continue to rely on Russian gas to meet their energy needs, and have not stopped buying the commodity despite pressure from peers within the bloc.
Moscow has slammed Western sanctions as illegal, and noted that they keep backfiring on the countries that impose them. Russia has also been gradually moving away from the dollar in trade, switching to transactions using national currencies with most of its international partners.
The newly imposed US sanctions against Russia’s Gazprombank are expected to send energy costs surging in parts of Europe, Finam Financial Group analyst Aleksandr Potavin told TASS on Friday. The risk of secondary restrictions will force buyers of Russian oil and gas to seek new payment tools, he predicted.
On Thursday, the US Treasury Department introduced blocking sanctions against more than 50 Russian lenders, including Gazprombank and six of its international subsidiaries. The new penalties effectively cut one of Russia’s largest banks off from the SWIFT interbank messaging system, meaning it can no longer carry out transactions that involve the dollar-based financial system. Gazprombank’s assets in the US have also been frozen.
“Due to the new sanctions against Gazprombank, foreign buyers of Russian gas and oil will be faced with the need to look for alternative payment routes that are likely to complicate the entire process, increase risks, and make the payment procedure more expensive,” Potavin said.
He specified that European buyers could use accounts in other banks or pay for energy supplies via other world currencies as an alternative.
“The new sanctions will lead to an increase in prices for Russian hydrocarbons in Europe, and supply disruptions can’t be ruled out as well, since all this creates new risks for foreign companies working with Russia,” he explained.
According to Alexander Frolov, expert at the InfoTek energy news center, the latest restrictions won’t have a direct impact on buyers of Russian gas who previously agreed to adopt the “gas for rubles” scheme to pay for their energy purchases. They will only apply to individuals and legal entities subject to US jurisdiction, he said, as quoted by TASS.
The analyst admitted, however, that companies using rubles for Russian energy supplies are at risk of secondary sanctions, “so gas buyers from Europe will turn to the US Treasury for clarification.”
Supplies of Russian pipeline gas to Europe have substantially declined due to Ukraine-related restrictions and the sabotage of the Nord Stream pipelines, although EU nations are still importing record volumes of LNG from the sanctions-hit state. Despite the bloc’s vows to drop purchases of Russian energy, it remains one of the world’s major buyers of Russian fossil fuels. In August, pipeline gas comprised the largest share of the EU’s purchases of Russia’s fossil fuels (54%), followed by LNG (25%), according to the Centre for Research on Energy and Clean Air (CREA).
November 22, 2024 -
Posted by aletho |
Economics, Russophobia | European Union, Russia, United States
Aletho News 
Is America’s war against Russia or the E.U.? Russia is thriving and the E.U. is on its last leg.
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This is further indication of the desperation of the JooSA to remain relevent! They are so defeated that these mindless sanctions are all it has left!
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