How do european gas companies realize the gas payments to Russian companies ? (Accounting)

How do european gas companies pay the gas payments to Russian companies ?

 

1-Russian gas companies use the GazPromBank

 

 

2- GazPromBank connects its correspondent bank for receiving euro payments from euro area. Its correspondent bank is GBP Bank.

 

3-GazPromBank created the account in correspondent bank for euro transactions. The following schematization indicates how GazProm opened the account in GPB.

 

4- Spanish gas company IberDrola buys gas from Russian gas company Lukoil.

 

5-IberDrola sents the money using spanish bank Santander. Santander sents this money to GPB Bank.

 

6-GazPromBank sents this money Lukoil deposit account.

 

7- From IberDrola to Lukoil.

 

 

8- This is new mechanism.

https://www.oxfordenergy.org/wpcms/wp-content/uploads/2022/04/Rouble-gas-payment-mechanism.pdf

 

9- Russian governments wants to convert these euros directly to Ruble in the russian exchange market.

Lukoil directly can’t use its euro account.

 

 

10- Lukoil’s euros are transfered to MICEX companies  and this increases ruble value (assumptional)

Engin YILMAZ

Ankara

2022