Gazprombank to keep UK payments licence until May: press

Gazprombank will keep its UK regulatory licence for processing payments until May, to continue handling EU gas purchases, Reuters reported April 22.

However the licence specifies that Gazprombank can only process payments under contracts that began before April 21. Gazprombank will be able to open and close bank accounts to service these contracts, Reuters said, citing a document from the UK treasury.

The state-owned banking group is a key facilitator of Russian oil and gas transactions, and was sanctioned by the UK to cut a key financial services link from Russia to the global economy.

Following the Kremlin's demand that customers in "unfriendly" countries use Russia's native currency, Moscow has recommended European energy customers open accounts with Gazprombank to convert euros or dollars into rubles. Moscow has struggled to implement its western currency ban, and it faces almost united EU opposition, with the exception of its long-standing ally Hungary.