Austria debunks 'fake news' over payment for Russian gas; 'Will continue paying in euros'

Austria will continue to pay for Russian gas deliveries in Euros, informed Austrian Federal Chancellor Karl Nehammer on Wednesday amidst Russian President Vladimir Putin's clarion call for European countries to pay in rubles. Shortly after the Russian state-owned gas agency, Gazprom announced a ban on gas supplies to Poland and Bulgaria over refusal to pay in Russian currency, Nehammer took to Twitter and slammed reports claiming Austria decided to shift in the mode of payment for Russian gas.

"Austria is sticking to the jointly agreed Euripean Union sanctions to the point and comma," Nehammer clarified.

Earlier in March, the CEO of the Austrian multinational integrated oil, gas, and petrochemical company OMV, Alfred Stern said that the company will abide by EU norms and "of course" continue to pay in euros. "We don't have any other basis for the contract. I wouldn't be able to do otherwise," he had said. Earlier in April this year, Nehammer echoed OMV CEO's stance, stating that Austria had no other basis for payment in any other currencies, except for dollars or euros. However, in a major turn of events, several media including Sputnik on Wednesday, citing local Austrian media, had reported that OMV has agreed to pay for Russian gas imports in rubles. The report claimed that Nehammer gas accepted Russian terms over payment mode and said they "were in line with the terms of the sanctions."

"Before the fake news of Russian propaganda is spread further here. Of course, OMV will continue to pay for gas delivery from Russia in euros," Nehammer said in his Twitter post.

Russia accused of using gas as an 'instrument of blackmail'

Russia on Wednesday suspended gas supplies to Poland and Bulgaria after the countries refused to comply with Kremlin's demand to pay for the imports in Russian currency. Russian state-owned gas mogul Gazprom, in a statement, informed that the supplies will resume only after the payments were cleared. In a short while after the announcement, Poland confirmed that Gazprom halted supplies through the Yamal pipeline. Bulgaria is yet to update the status on supplies.

Gazprom, meanwhile, has warned both the EU countries against "unauthorised withdrawal of Russian gas from transit volumes to third countries" since both countries serve as transit lines to Germany and other west European nations.

European Commission President Ursula Von der Leyen also slammed Russia for its suspension of gas supplies to Poland and Bulgaria. "It is an attempt by Russia to blackmail us," she said. As Russia toys with its European customers, UK Deputy Prime Minister Dominic Raab said that the move would make Russia an "economic pariah," while speaking to Sky News. He added the move will leave a "damaging impact" on Moscow and further isolate it amid the ongoing war.

(Image: AP)