Gazprom has requested India’s largest fuel transmitter GAIL (India) to pay for fuel imports in euros as an alternative of {dollars}, two sources stated, in an indication the Russian vitality large seeks to wean itself away from the US foreign money within the wake of the Ukraine battle.
European international locations and the United States have imposed heavy sanctions on Russia since Moscow despatched troops into Ukraine on Feb 24.
GAIL has a long-term fuel import cope with Gazprom Marketing & Trading Singapore to yearly purchase 2.5 million tonnes of liquefied pure fuel and has been settling commerce with Gazprom in {dollars}.
GAIL, which imports and distributes fuel, additionally operates India’s largest fuel pipeline community.
Last week, Gazprom wrote to GAIL requesting that the corporate settle funds for fuel purchases in euros as an alternative of {dollars}, the sources conversant in the matter stated, including the state-run Indian agency remains to be inspecting the request.
“GAIL doesn’t see any problem in settling payment in euros as European countries are paying for their imports in euros,” stated one of many sources.
The sources stated that sanctions won’t hit funds in euros as a result of GAIL’s contract is with a Singapore unit of Gazprom. Gazprom and GAIL didn’t reply to Reuters’ emails searching for remark.
Western sanctions have dealt a crippling blow to Russia’s economic system, however the European Union, which depends on Russian oil and fuel, has stopped wanting putting curbs on vitality imports and continues to pay in euros.
President Vladimir Putin stated on Wednesday that Russia, the world’s largest fuel producer, will quickly require “unfriendly” international locations to pay for gas in roubles.India, nonetheless, has avoided outright condemnation of Russia, though it has known as for an finish to violence in Ukraine, and it has not banned Russian oil and fuel imports, not like a number of Western international locations.
In truth, Indian firms are snapping up Russian oil as it’s accessible at a deep low cost after some firms and international locations shunned purchases from Moscow.
The sources stated that up to now Gazprom is supplying the volumes dedicated to beneath its contract with GAIL.
The sources declined to be named as they don’t seem to be authorised to talk to the media.
