NEW DELHI, March 25 (Reuters) – Gazprom (GAZP.MM) has requested India’s largest gasoline transmitter GAIL (India) (GAIL.NS) to pay for gasoline imports in euros as an alternative of {dollars}, two sources mentioned, in an indication the Russian power big seeks to wean itself away from the U.S. forex within the wake of the Ukraine battle.
European nations and the US have imposed heavy sanctions on Russia since Moscow despatched troops into Ukraine on Feb. 24.
GAIL has a long-term gasoline import take care of Gazprom Advertising & Buying and selling Singapore to yearly purchase 2.5 million tonnes of liquefied pure gasoline and has been settling commerce with Gazprom in {dollars}.
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GAIL, which imports and distributes gasoline, additionally operates India’s largest gasoline pipeline community.
Final week, Gazprom wrote to GAIL requesting that the corporate settle funds for gasoline purchases in euros as an alternative of {dollars}, the sources accustomed to the matter mentioned, including the state-run Indian agency remains to be analyzing the request.
“GAIL does not see any downside in settling fee in euros as European nations are paying for his or her imports in euros,” mentioned one of many sources.
The sources mentioned that sanctions may not hit funds in euros as a result of GAIL’s contract is with a Singapore unit of Gazprom.
Gazprom and GAIL didn’t reply to Reuters’ emails in search of remark.
Western sanctions have dealt a crippling blow to Russia’s economic system, however the European Union, which depends on Russian oil and gasoline, has stopped wanting putting curbs on power imports and continues to pay in euros.
President Vladimir Putin mentioned on Wednesday that Russia, the world’s largest gasoline producer, will quickly require “unfriendly” nations to pay for gasoline in roubles. learn extra
India, nevertheless, has shunned outright condemnation of Russia, though it has known as for an finish to violence in Ukraine, and it has not banned Russian oil and gasoline imports, not like a number of Western nations.
In actual fact, Indian firms are snapping up Russian oil as it’s obtainable at a deep low cost after some firms and nations shunned purchases from Moscow. learn extra
The sources mentioned that to this point Gazprom is supplying the volumes dedicated to underneath its contract with GAIL.
The sources declined to be named as they aren’t authorised to talk to the media.
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Reporting by Nidhi Verma; Enhancing by Susan Fenton
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