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May 5 (Reuters) – French utility Engie (ENGIE.PA) is still paying for Russian gas in euros, in accordance with its contracts, and hopes the European Commission will provide clear guidance as soon as several companies face payment delays this month, said its CEO. said Thursday.
“We need clarity and we need fairly detailed guidance from the European Commission on possible payment solutions. What we need from the European Union is clarity,” said Catherine MacGregor at a press conference on renewable energy.
Russian President Vladimir Putin has demanded payment for the country’s gas in rubles in response to broad Western sanctions against Russia after its invasion of Ukraine.
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In particular, Moscow said that foreign gas buyers must deposit euros or dollars in an account at Gazprombank (GZPRI.MM), which would convert them into rubles.
Russia cut off gas supplies to Poland and Bulgaria last month after refusing to pay in rubles under the new deal, raising fears that other countries could be next. Read more
MacGregor had earlier told RTL radio that Engie was “still paying in euros” and working on a solution to Moscow’s demands, adding that Engie’s shares were currently “pretty full”.
MacGregor said a cut in Russian gas supplies to Europe was a ‘credible’ scenario and the main unknown was whether Russia would cut gas supplies to Europe ‘before or after the summer’ .
There is “no concern” about supplies for its customers in May, it added, as the next payments are due by the end of the month.
“What is important is to anticipate next winter. This is why the timing of the shutdown is essential. The larger our stocks, the easier we will get through next winter,” he said. she declared.
Engie, like other European companies in the sector, is preparing for a possible shutdown of Russian gas supplies to Europe, by diversifying sources of supply and by “massively” importing liquefied natural gas (LNG).
The company recently entered into a 15-year LNG deal with US-based NextDecade Corp.
The longer-term expansion of renewables is another part of Engie’s response, MacGregor said.
Russian gas represents 20% of Engie’s supplies and 40% of Europe’s gas needs. Read more
The European Commission said on Monday that full compliance with Russia’s proposed ruble payment system would breach existing EU sanctions against Russia, but promised more detailed guidance on what companies can and cannot do. legally. Read more
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Reporting by Tassilo Hummel and Dominique Vidalon Writing by Sarah Morland, Dominique Vidalon Editing by David Goodman and Jane Merriman
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