Treasury grants licence to pay contracts for Russia’s Gazprombank until May 31
The treasury has granted a licence to pay Russia’s Gazprombank and its subsidiaries until the end of next month.
The decision was made to ensure gas supplies continue to flow to the European Union according to a document seen by Reuters.
The license allows an individual or firm to continue paying any contracts that began before April 21.
Gazprombank is one of the main ways transactions are conducted for Russian oil and gas, and it was sanctioned by the UK due to the war in Ukraine. Gazprom is one of Russia’s key oil and gas bodies.
Russia has continued to supply oil and gas to the European Union, but has demanded payment in roubles, and threatened to turn off the taps if not.
Moscow urged people to open accounts with Gazprombank, so payments could be converted into roubles.
On Thursday, the UK issued a set of 24 new sanctions against individuals and firms linked to the Kremlin’s war machine.
The foreign office says the UK has so far sanctioned more than £900bn of global assets from Russia-linked banks and oligarchs, as well as their families.
Following Thursday’s latest sanctions, Foreign Secretary Liz Truss said: “The UK is unyielding in our support for Ukraine and in holding Putin and his regime to account.”