The European Commission has warned EU countries that paying for Russian gas in rubles will be considered a violation of sanctions restrictions. Bloomberg cites a source familiar with the European Commission’s conclusions.

According to the agency, the European Commission has conducted a preliminary legal analysis of the decree of Russian President Vladimir Putin, according to which payments for gas supplies to “unfriendly” countries should be converted into rubles. Under the new scheme, foreign buyers can transfer foreign currency to Gazprombank, which will sell it on the Moscow Exchange, credit the proceeds in rubles to special accounts and transfer the money to Gazprom.

According to the European Commission’s conclusions, the document “creates a new legal situation” and will allow Moscow to gain full control over the terms of transactions and the exchange rate, which the authorities will be able to manipulate in their own interests, the source said. The EU also warned the alliance members that the requirements put forward by Moscow could lead to higher costs for buyers, he added.

In addition, the new approach may affect other bans on various money market instruments that Gazprombank may issue, the agency wrote.