EU readies for end of Russia gas, warns won't pay in rubles

Poland’s environment minister, Anna Moskwa, urged fellow EU states not to heed Russia's demand to pay for gas supplies in rubles as Brussels looks to counter Moscow's energy threats

The ministers met to coordinate efforts to counter what Brussels has branded the Kremlin's bid to "blackmail" the West with threatened energy shortages

The European Union warned member states Monday to prepare for a possible complete breakdown in gas supplies from Russia, insisting it would not cede to Moscow's demand that imports be paid for in rubles.

The European Commission will on Tuesday propose to member states a new package of sanctions to punish President Vladimir Putin's Kremlin for its invasion of Ukraine, including an embargo on Russian oil, officials said.

Moscow has demanded clients from "unfriendly countries" -- including EU member states -- pay for gas in rubles, a way to sidestep Western financial sanctions against its central bank. It has cut off Bulgaria and Poland after their firms refused to comply.

Simson said that "following the full procedure as set out by Russia constitutes a breach of sanctions" imposed by the European Union.

- 'Tricky' problem -

This would entail a firm opening two accounts in Russian state energy giant Gazprom's bank. Payments would be deposited in one account in euros or dollars, then be passed through the sanctioned Russian central bank, before arriving in the second account in rubles.

"What has happened today is that the European Commission and the presidency have confirmed that paying in rubles is unacceptable, that it is a breach of sanctions and a breach of European solidarity," Poland's environment minister Anna Moskwa said.

But Sweden's Khashayar Farmanbar, minister for energy and digital development, said: "I think the clarification is still ongoing ... it is a complex process." 

The Czech minister of industry and trade, Jozef Sikela, said he had asked for a "clear explanation of how to proceed".

Kadri said she had spoken to Italian minister Roberto Cingolani, who did not attend the meeting, and that the report was "misleading" -- but she promised to provide him and all EU capitals with clearer guidance on resisting Putin's ultimatum.

- Phased-out oil -

On Tuesday, the EU will propose a phased-out ban on imports of Russian oil -- but not gas. 

The sixth package of anti-Russian measures will also target the country's largest bank, Sberbank, which will be excluded from the global banking communications system SWIFT, diplomats said. 

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