New US sanctions against Russia's Gazprombank expected to increase energy prices in parts of Europe
Date
11/25/2024 7:12:42 AM
(MENAFN) New US sanctions against Russia's Gazprombank are expected to increase energy prices in parts of Europe, according to Aleksandr Potavin, an analyst at Finam Financial Group. The sanctions, announced by the US Treasury Department on Thursday, target over 50 Russian financial institutions, including Gazprombank, and cut it off from the SWIFT system, blocking its ability to process dollar transactions. As a result, foreign buyers of Russian oil and gas will need to find alternative payment methods, which Potavin believes will raise costs and create new risks. European buyers may turn to other banks or use different currencies for payments, complicating the process. This could lead to higher prices and potential supply disruptions for Russian energy in Europe.
Although some buyers using the “gas for rubles” scheme are less affected, Potavin warned that they could still face secondary sanctions. Companies dealing in rubles might seek clarification from the US Treasury to avoid penalties. Despite the sanctions, European imports of Russian LNG remain high, though pipeline gas exports have decreased due to the war in Ukraine and the sabotage of Nord Stream pipelines.
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