Changes are underway in the European gas market. Natural gas prices are now falling as adjustments in payment procedures by Russian authorities have somewhat eased concerns about a potential cutoff of supplies to Europe, Bloomberg reported.

On December 5, Russian President Vladimir Putin announced a change in the payment procedure for foreign buyers of Russian gas, allaying fears that US sanctions imposed on Gazprombank would lead to a premature halt in LNG supplies to the European region.

Against this background, gas futures fell by 1.4%. Prices are now on track to end the week down more than 3%, the first such decline since early November.

Under the new conditions, Moscow now allows payments through third parties, although Gazprombank remains the sole authorized institution for processing gas payments. Foreign buyers of Russian gas can now use accounts in other banks to convert foreign currency payments into rubles and transfer the funds to Gazprombank.

Analysts believe that the rapid depletion of fuel from European storage facilities has left the EU gas market vulnerable. While Europe is looking to other gas suppliers besides Russia, concerns about supply disruptions persist. Currently, the EU’s gas storage levels stand at nearly 84%, a figure lower than last year.

Meanwhile, LNG imports into the EU are picking up pace, easing concerns about future supplies. Preliminary forecasts suggest that this winter will be relatively mild in Europe, which will help the region conserve fuel, analysts point out.