The European Union is preparing a plan to meet Vladimir Putin's demands to pay Russia in rubles for natural gas without violating sanctions imposed on Moscow over its invasion of Ukraine, the news agency reports. Bloomberg (paid access, content in English), quoted by Eco Online.

The new guidelines will allow gas buyers to open an account with the state-owned Gazprombank and pay in euros or dollars, which will then be converted into rubles by the bank.

Companies must make "a clear statement that they consider their obligations met once they pay in euros or dollars, according to existing contracts," said a source quoted by Bloomberg.

Putin is forcing countries to pay for gas in rubles to give strength to the Russian currency that is being squeezed by sanctions following Russia's war in Ukraine. The Kremlin has imposed capital controls and raised interest rates to support the ruble.

The European Commission is now looking for a solution to meet this requirement without violating sanctions. There will already be about 20 companies that already have accounts with Gazprombank. Ursula von der Leyen called Russia's move "blackmail" and a "clear violation of contracts."

One of the sources told Bloomberg that Germany, Hungary, Italy and France are in agreement with the plan, while Poland considers that no the proposal does not give legal certainty. Most member states will have to pay for gas imports to Russia by the end of the month, and if they fail they could see their supplies cut off.