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Saturday, December 3, 2022


    As Russia claims that sanctions will not influence gas payments to Europe, gas prices are falling.

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    On Tuesday, the price of natural gas per megawatt-hour in Europe fell 4.3 percent, according to reports that Russia notified European customers that gas payments could be made without violating sanctions.

    The price per megawatt-hour in Europe declined to €89.75 ($94.83) at 09.38 local time (0638 GMT) on Tuesday from €93.78 ($99.09) at Monday’s close on the Netherlands-based virtual natural gas trading point (TTF).

    The news that European countries could continue to pay Russia for natural gas without violating sanctions aided the price drop.

    The payment procedure entails opening two accounts with Gazprombank, the authorized bank, to transfer cash in euros or dollars. Gazprombank will sell the foreign currency at MICEX-RTS in Moscow and transfer the ruble revenues to the Central Bank of Russia.

    Gazprombank will then transfer the ruble funds from the buyer’s account to Gazprom’s account in Gazprombank.

    Russian energy firm Gazprom halted gas flow to Poland citing non-compliance with gas payments via the rubles system.

    The reliance on more liquefied natural gas as an alternative to natural gas, coupled with warmer weather in the spring and coming summer months is helping relieve pressure on natural gas prices.

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