Uniper weighs rubles payment demand

Dusseldorf-based utility Uniper is considering its options for paying its first gas supply bill to Russia's Gazprom in May under the latter's ruble-only billing policy, after the Russian giant started enforcing the rule on European countries in recent days, Montel reported April 27.

Uniper's chief financial officer Tiina Tuomela said it could decide to pay for Russian gas in euros converted to rubles. Russian president Vladimir Putin has been seeking to force "unfriendly countries" to Russia to pay in rubles since March. Gazprom has now issued notices to Poland and Bulgaria that their gas supplies will be cut, and many European customers will have to find solutions to the demand in the coming weeks.

The EU has recommended that utilities with contracts that stipulate payment in euros or dollars refuse to comply. It is unclear how many companies are in this position. Uniper COO Niek den Hollander lamented the lack of a common Europe-wide approach that could have guided the utility's negotiations with Gazprom. 

Uniper's finances are adjusting to tighter gas markets in the wake of the Ukraine war. The company said on April 26 it expected its first quarter results to come in "significantly below" expectations. This is mainly due to fluctuations in the midstream business, where gas storage withdrawals have been reduced to capitalise on market conditions.

Uniper is now projecting an unadjusted net loss of €3bn for the first three months. It expects to write off a further €2bn on loans to Gazprom's aborted Nord Stream 2 pipeline and its Russian subsidiary Unipro.