(Bloomberg) -- Slovakia, which relies on Russia for more than 80% of its natural gas, said it hasn't activated new euro and ruble accounts set up by Gazprombank JSC.
The accounts were opened following a decree by President Vladimir Putin that all European buyers pay for their gas in the Russian currency. The European Union has warned importers not to pay in rubles to avoid breaching sanctions, but several firms have sought workarounds to ensure gas continues to flow.
Slovakia didn't activate the new accounts, Deputy Economy Minister Karol Galek said on Friday, adding that the EU must take a common approach to payments.
Confusion persists over how member states can remain in line with EU rules while making sure gas shipments aren't halted, following a cutoff to Poland and Bulgaria earlier this week.
“The question remains: what's considered as payment?” Galek said. “Whether it's transfer of money to the account, or the conversion to rubles -- that needs to be solved with respect to sanctions and the validity of the contract.”
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EU guidelines state that it may be possible to keep buying gas by paying into a euro account and declaring the transaction done, while Moscow has said payments are complete only after conversion to rubles.
State-controlled Gazprombank is now asking Slovak energy company Slovensky Plynarensky Priemysel AS and other gas suppliers to consent to the use of the new euro and ruble accounts by Russia's central bank, Galek said. That would enable the conversion of euros and the transfer of rubles.
The EU has indicated that any step beyond sending payments to a euro account would breach sanctions by putting the funds at the disposal of the central bank for an undefined period of time.
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