Incoming pipelines leading to the Bovanenkovo gas field on the Yamal peninsula in the Arctic circle, Yamalo-Nenets Autonomous Region, Russia
"We propose that, by then, gas prices should be frozen or capped at their level in the contract with Gazprom and the difference with the higher prices of alternative supplies be paid for by the State," she said at a press conference after meeting with the Bulgaria Professional Employer Organization (PEO).
Comment: 'Paid for by the State', does she mean the taxpayer?
The calls come a day after Gazprom ceased delivering gas to Bulgaria after the country refused to pay for energy supplies in rubles. Bulgaria relies on Russia for nearly 90% of its gas, with the remainder coming from Azerbaijan.
Earlier in the day, Bulgarian Prime Minister Kiril Petkov said that Bulgaria has enough gas supplies to last more than one month should nothing change, stressing that Sofia would not accept Russia's terms on exports of gas.
"But we hope to complete the construction of a new interconnector with Greece by the end of June. And we also look forward to a common strategy for the procurement of liquefied gas by the European Commission," Petkov said in an interview with Le Monde.
Comment: It's not clear where Bulgaria expects to source these alternative gas supplies, because experts have repeatedly stated there are currently Russia's supplies are 'irreplaceable'.
EU to comply with Russia's payment terms - media
Sources told the newspaper that gas distributors in Germany, Austria, Hungary and Slovakia aim to open ruble accounts at Gazprombank in Switzerland. They said that negotiations between European buyers and Russian gas supplier Gazprom have intensified as payment deadlines approach.
Under the new mechanism, European companies would continue to pay Gazprombank for their imports in euro in order not to breach the sanctions regime.
Comment: All so as to 'not breach the sanctions'; farcical, but typical of the Western world in 2022.
The Russian bank, which is not under EU sanctions, would then, at their request, convert euro-denominated deposits into rubles in a second account opened in their name, for onward payment to the Russian gas provider.
"We consider that the amendment of the payment process complies with the sanctions law and so the payments are possible," said chief financial officer of Germany's Uniper Tiina Tuomela.
Austria's OMV also announced it had analyzed the Gazprom request on payment methods in light of the EU sanctions and was working on a solution. According to Bloomberg, on Wednesday the Austrian firm denied that it plans to open an account in Switzerland to pay for Russian gas supply. Austria's Chancellor Karl Nehammer earlier described as fake news the reports about the nation's shift to payment for gas in rubles.
FT's sources said that Gazprom's other large customer, Italy's Eni, is evaluating its options. The company has until the end of May, when its next payment for Russian supplies is due.
Third EU state balks at 'ruble payments' for gas
Helsinki has rejected Moscow's ruble-based payment scheme for gas, the local media reported on Wednesday. Russia imposed the payment mechanism last month on countries that have placed sanctions on Russia but continue to import its gas.
"We have made the decision in the government's economic policy committee that Finland will not agree to ruble payments. The decision was already made at the beginning of April," Finland's Minister for European Affairs and Ownership Steering Tytti Tuppurainen told the Helsingin Sanomat newspaper. She said that it could be seen as blackmail and part of "Russia's geopolitical efforts."
Comment: And what of the all out economic war the West is waging on Russia?
Russia has denied using natural gas exports as a tool to "blackmail" Europe, a charge also leveled by European Commission President Ursula von der Leyen.
"Russia has been and remains a reliable supplier, committed to its obligations" and the new terms for exporting the gas were "caused by unprecedented hostile steps against us," Kremlin spokesman Dmitry Peskov said on Wednesday.
Comment: Indeed, that is undeniable.
Under the ruble-based mechanism, gas buyers are required to set up ruble accounts with Gazprombank. They are allowed to make payments in their currency of choice, but their payments will be converted into rubles to reach the gas provider through this account.
Russian fuel giant Gazprom sent a letter to their Finnish state-owned counterpart, Gasum, at the beginning of April informing them of the new terms of their deal. Gasum is conducting a legal assessment of its situation and considering a response, Helsingin Sanomat reports.
Comment: Every European country involved in the sanctions has already broken any contract they had with Gazprom and so they have no legitimate legal recourse.
Finland is working on renouncing Russian natural gas, but "companies are responsible for their own operational business decisions," Tuppurainen said.
She added that if the goal of divestment was to stop indirectly "funding" Russia's military operation, then Finland should "avoid a situation where we have to pay for breaches of contract."
Meanwhile, Hungary, Austria, and Germany have accepted the ruble-based payment mechanism. Austrian Chancellor Karl Nehammer announced on Wednesday that Vienna had found the new scheme to be "in line with the terms of the sanctions" leveled on Moscow.
In total, Russia supplies pipeline gas to 23 European countries.
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