The Italian oil company Eni announced the opening of bank accounts in euros and items in the Russian financial entity Gazprombank in order to carry out the necessary transactions for the supply of Russian gas and thus comply with the new regulations required by Moscow.

These guidelines consist of “opening an account in the currency provided for in the contract, making a payment in that currency and making a statement saying that this is how the payment for the gas delivery in question is closed,” said the European official.

According to the information provided by the company, “the payment obligation can be fulfilled by transferring euros and this procedure should not be incompatible with the sanctions imposed by the European Union (EU) against Russia in response to the invasion of Ukraine.”

The Eni oil group, controlled by 30.3 % of its shares by the Italian State, stressed that the Russian authorities have guaranteed that “invoicing and payment will continue to be made in euros”, as it is the currency established in the contracts and in within 48 hours a financial operator will make the change to rubles, without the intervention of the central bank of Russia.

Payment for Russian gas in stages

As will be recalled, the European Commission recommended not to open accounts in currencies other than those established in the contracts. The opening of an account in rubles would be violating the sanctions established against Russia for its invasion of Ukraine.

In principle, the Russian government established that countries interested in acquiring gas must pay in items. But a new Kremlin decree introduced a two-stage payment method consisting of two phases. First, making the payment in the currency of the contract, that is, dollars or euros, in a Russian bank. The second phase is to convert that money into rubles in an account of the same institution.

With this new procedure, the Russian central bank does not intervene in financial transactions, for which the sanctions established by the United States and the European Union will not be violated.

M. Rodríguez

Source: swissinfo.ch

La entrada Italian oil company opens ruble accounts to pay for Russian gas apareció primero en Bitfinance.

Most of the members of the Governing Board of Bank of Mexico(Banxico) resolved to increase interest rates by 25 basis points, to stand at 4.25 %.

With this decision, the financial entity aspires to slow down inflation, which stood at 6.02 % during the first half of June. Headline inflation is projected to approach the 3 % target in the third quarter of 2022.

The Bank informed, through a statement, that the next decisions on monetary policy will be related to the behavior of the factors that impact inflation, their expected trajectories in the forecast horizon and their expectations.

According to the information, the projections are subject to upside risks: persistence of underlying inflation or scenarios of exchange rate depreciation; or downward, greater measures of social distancing or exchange rate appreciation.

“The Governing Board will take thenecessary actions based on the additional information, so that the reference rate is consistent with the orderly and sustained convergence of general inflation to the target of 3 % in the term in which the company operates. monetary policy,” said the agency.

The bank also indicated that the Mexican economy registered during the month of March “a significant rebound” and some moderation in April. It is estimated that for the rest of the year economic activity will resume its recovery path, with a balanced balance of risks, although with “marked differences” between sectors.

M. Rodríguez

Source: elconfidencial.com

La entrada Bank of Mexico increases interest rates to 4.25 % apareció primero en Bitfinance.