Energy expert says most recent US sanctions will hit EU
Date
11/24/2024 7:56:58 AM
(MENAFN) The recent US sanctions against Russia’s Gazprombank are expected to drive up energy prices in parts of Europe, according to energy analyst Aleksandr Potavin from Finam Financial Group. The sanctions, imposed by the US Treasury Department, target over 50 Russian financial institutions, including Gazprombank, and cut the bank off from the SWIFT system, which halts its ability to process dollar-based transactions. Additionally, Gazprombank’s US assets have been frozen.
Potavin explained that European buyers of Russian oil and gas will need to find alternative payment methods, potentially complicating transactions and increasing costs. They may turn to other banks or use different currencies for payments. These measures could lead to higher prices for Russian energy in Europe and disrupt supplies, as they introduce new risks for foreign companies dealing with Russia.
Despite these sanctions, companies involved in the "gas for rubles" scheme with Russia may not be directly impacted, as the sanctions primarily apply to entities under US jurisdiction. However, there is a risk of secondary sanctions for those using rubles, leading European companies to seek clarification from the US Treasury.
While European imports of Russian pipeline gas have sharply declined due to political tensions and pipeline sabotage, the EU remains a significant buyer of Russian energy, including liquefied natural gas (LNG). In August, pipeline gas still accounted for over half of the EU’s Russian fossil fuel imports, followed by LNG.
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