Russian gas still flowing to Europe despite deadline day for rouble payments arriving

The supply of gas current into Europe from Russia knocked  its climax level in four months today, despite troubles from the Kremlin to stop all supplies to "unfriendly" countries, likely causing destruction.

Friday marks the time limit for countries in the European Union and elsewhere to start compensating for their gas in roubles.

Any contravention, President Vladimir Pu!tin said, would bring about Russia putting off the taps for gas supplies to Europe, inciting all over the place an energy shortages on the continent. 

Mr Putin has desired that foreign buyers  of Russian gas in Europe withold payment in dollars and euros, and instead open rouble  basic unit of money in Russian banks in order to bolster the country’s currency  facing insolvency  

But the Kremlin seemed to hencourage a last-ditch struggle, saying that Russia wouldn’t stop all supplies today as remuneration  on deliveries due after 1 April wouldn’t be taken until as late as May.

About 60% of foreign gas into Europe are at the moment  paid in euros,while  the rest are in dollars.

It is certain that Russia and the European Union will reach some compromise, according to energy experts, such that  clients in countries like France and Germany would still pay for their gas in euros while Gazprom converts that to roubles in Russia.

"It was in the interest of both parties to avoid a complete halt of flows," said Leon Izbicki, a natural gas analyst at Energy Aspects.

"Europe would need to implement rationing of gas, which would have massive ramifications and lead to industrial shutdowns, while Russia would lose yet another revenue stream."

But Gazprom maintained on Friday that it was proceeding with the plans, while emphasizing  that it had begun to source requests for rouble payment switches to its clients.

Meanwhile, a mouthpiece for the Kremlin affirmed that Mr Putin’s order to receive gas payments in roubles is  beyond recall.

“The overall risk of a complete shutdown is lower in our opinion,” Mr Izbicki said, pointing to the Russian declaration on Thursday that it would welcome payments in dollars or euros into a designated currency account at Gazprombank.

EU boycott especially except Gazprombank, giving room to find a compromise.

Demanding reimbursements in roubles could support the weak currency and support exchange rates, experts said, while allowing Russia to more easily traverse punishment.

Daily gas supply from Russia into Europe through Ukraine clashed their highest level onl Friday since November, according to Bloomberg data.

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