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European Union countries are set to cut Russia’s largest lender Sberbank off the SWIFT international payments system, as the bloc readies a sixth package of sanctions against Russia for its invasion of Ukraine.
The proposed restrictions also target Credit Bank of Moscow and the Russian Agricultural Bank, according to people familiar with the discussions. The EU, the US and the UK have already banned several Russian banks from using SWIFT.
The EU is still sparing Gazprombank, which is handling European payments for Russian gas. Russian President Vladimir Putin imposed new payments terms on European companies, which include opening an account in rubles with Gazprombank. The European Commission, the EU’s executive bloc, has given ambiguous written guidance on whether this means breaching sanctions against Russia. The bloc’s executive arm suggested firms open an account in euros or dollars, and provide a statement deeming the legal obligation fulfilled at that point.
Traders have been closely watching payment disputes, with Gazprom PJSC having already stopped supplies to Poland, Bulgaria and Finland as a result. Russia is cutting natural gas supplied via pipelines to the Netherlands and Denmark could be next.
European nations are split over how to handle Moscow’s demand, and utilities have responded to the challenge differently. Major buyers like Italy’s Eni SpA and Germany’s Uniper SE have said they have found a solution to pay and expect supplies to continue.
EU leaders holding a two-day summit in Brussels agreed late Monday to pursue a partial ban on Russian oil, paving the way for the sixth package of sanctions. The sanctions would forbid the purchase of crude oil and petroleum products from Russia delivered to member states by sea but include a temporary exemption for pipeline crude, European Council President Charles Michel said.
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