LONDON – Britain has granted Russia’s Gazprombank and its subsidiaries a licence for payments until the end of May despite sanctions in order to ensure gas supplies to the European Union, a Treasury document showed on Friday.

Britain allows payments to Gazprombank for EU gas imports until May 31- oil and gas 360

Source: Reuters

The licence permits an individual or company to continue payments under contracts that began before April 21, 2022 and allows actions such as opening and closing bank accounts in order to make such payments, according to the document published online.

Gazprombank, one of the main channels for payments for Russian oil and gas, is among Russian entities that have been sanctioned by Britain to penalise the Kremlin and its supporters over the Ukraine conflict.

Russian energy giant Gazprom GAZP.MM is continuing to supply natural gas to Europe via Ukraine in line with requests from European consumers, according to the gas producer.

In retaliation for wide-ranging sanctions announced by Western countries including the United States and the European Union, Russian President Vladimir Putin warned gas supplies could be cut unless payment is made in roubles.

Moscow has proposed that energy buyers open accounts at Gazprombank, where payments in euros or dollars would be converted into the Russian currency.

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