Russian President Vladimir Putin.
Image: Sputnik
Russian President Vladimir Putin on Thursday scrapped the requirement for foreign buyers of Russian gas to pay through Gazprombank, after the firm was slapped with US sanctions last month.
Putin made it compulsory for "unfriendly" countries to pay for Russian gas with rubles in 2022, forcing buyers to open special accounts with the financial arm of Russian energy giant Gazprom.
Under a decree signed by Putin on Thursday, foreign buyers will now be able to use other banks to pay for Russian gas.
Gazprombank, a major financial institution that handles payments for Russia's energy exports, was the largest remaining Russian bank not previously blocked by the United States Treasury.
The decision to sanction it sparked concern among countries still buying gas through the state-controlled lender, including Hungary, which reportedly asked for an exemption.
The US Treasury alleged Gazprombank was being used as "a conduit for Russia to purchase military material for its war effort against Ukraine", as well as to pay soldiers.
Russia has faced a barrage of sanctions from Western countries in response to its military offensive on Ukraine in February 2022, including an oil price cap designed to curb the Kremlin's revenues.
Gazprombank had already been punished with sanctions by other countries including Australia, Canada, New Zealand, and the United Kingdom.
AFP