OR European Union presses them USA explore ways to ease US sanctions against Russia’s Gazprombank, a financial institution crucial to the flow of Russian natural gas on the block, according to the Bloomberg agency.

The talks continue even after Russian President Vladimir Putin lifted a requirement that foreign buyers use only the bank in question when buying Russian gas, a move aimed at avoiding US sanctions.

The EU and the US are discussing the type and scope of mitigation measures after some European governments and companies warned that the sanctions would pose a risk to the region’s security of supply, according to the international agency citing people with knowledge of the matter.

Options being considered in the talks include whether payments can be made legally through a Luxembourg-based subsidiary of Gazprombank or whether it is better to use other payment channels, according to the sources, who spoke on condition of anonymity.

While Putin’s decree lifting the requirement that foreign buyers pay directly through Gazprombank helped calm the European gas market, it further complicated the payment system and left financial institutions still uncertain about legal risks.

Last month, the US imposed sanctions on the Russian bank as it stepped up efforts to punish Moscow for its war in Ukraine.

Under pressure from Europe facing severe gas shortages after the invasion of Ukraine, the US had earlier delayed imposing sanctions on Gazprombank. Meanwhile, the EU has worked to boost alternative supplies, including liquefied natural gas (LNG) from the US.

The share of Russian pipeline gas in EU imports fell from over 40% in 2021 to around 8% last year. For pipeline gas and liquefied natural gas together, h Russia accounted for less than 15% of imports. It was behind Norway, which became the bloc’s top supplier with a 30% share, and the US, which supplied 19% of European gas.

According to Putin’s latest decree, foreign buyers are now allowed to use other banks to convert the money into rubles before the transfer. But Gazprombank remains the only authorized institution for payments. Banks will want to play it safe with any solution to ensure they don’t accidentally fall victim to US sanctions, the sources said.

In 2022, Gazprom changed the way it accepted payments from European buyers, requiring rubles through Gazprombank. Poland and Bulgaria were cut off in 2022 because they refused to comply, but Slovakia and Hungary still receive Russian pipeline gas. The Budapest government submitted a request to the US earlier this week for an exemption.