Russia's Gazprom seeks gas payments in euros from India's GAIL: sources

So far Gazprom is supplying the volumes committed to under its contract with GAIL

Gazprom has asked India's largest gas transmitter GAIL (India) to pay for gas imports in euros instead of dollars, two sources said, in a sign the Russian

energy giant seeks to wean itself away from the U.S. currency in the wake of the Ukraine conflict.

European countries and the United States have imposed heavy sanctions on Russia since Moscow sent troops into Ukraine on February 24.

GAIL has a long-term gas import deal with Gazprom Marketing & Trading Singapore to annually buy 2.5 million tonnes of liquefied natural gas and has been settling trade with Gazprom in dollars.

GAIL, which imports and distributes gas, also operates India's largest gas pipeline network.

Last week, Gazprom wrote to GAIL requesting that the company settle payments for gas purchases in euros instead of dollars, the sources familiar with the matter said, adding the state-run Indian firm is still examining the request.

"GAIL doesn't see any problem in settling payment in euros as European countries are paying for their imports in euros," said one of the sources.