According to President Vladimir Putin, deliveries of Russian gas abroad must be paid in rubles from Friday. The head of state said on Thursday that he had signed a corresponding decree. To get gas, foreign customers would have to open ruble accounts with Russian banks. The West refuses to pay in rubles. It is true for companies that they “will, can and will” pay in euros, German Chancellor Olaf Scholz explained (see video above).
“If such payments are not made, we consider it a buyer’s default with all the consequences that entails,” the Russian president said. “Nobody is selling us anything for free, and we won’t be doing any charity work – that is, existing contracts will be terminated.” The West has so far rejected requests for payment in rubles.
The contracts between the Austrian OMV and the Russian Gazprom are denominated in euros. The domestic gas company is now waiting for written information from the Russian contract partner, OMV announced at the request of APA. OMV guarantees “compliance with all applicable sanctions and legal provisions”.
Gewessler welded: “Was announced for a long time”
The Department of Energy was calm. The responsible minister Leonore Gewessler (Greens) said in a statement that “the step Russia is taking today has long been announced”. This means that gas deliveries and the market situation can be closely monitored. According to Gewessler, domestic gas storage facilities are currently 13 percent full, which is the same as the March average.
German Chancellor Olaf Scholz also reacted calmly to Putin’s announcement. Scholz referred to the existing contracts in Berlin on Thursday. “It says you pay in euros, sometimes in dollars,” he said. “In the conversation with the Russian president, I made it clear that this will remain the case.” Now it will become clear how Russia will implement this. “Companies want, can and will in any case pay in euros.”
“Unfriendly States” Should Buy Rubles
Russia had previously caused confusion. Customers from “unfriendly” states should buy rubles for the currencies listed in their contracts, Putin’s spokesman Dmitry Peskov reiterated. The settlement could go through Gazprom Bank. According to the presidential office, Putin detailed to Scholz on Wednesday how to make ruble payments for gas. On the other hand, government spokesman Steffen Hebestreit emphasized on Wednesday that Putin had assured Scholz “that nothing would change for European contract partners”.
A week ago, Putin announced that in future he would only sell Russian gas for rubles to “unfriendly” states. At the time, the head of the Kremlin ordered Gazprom and the central bank to work out appropriate modalities for switching payments from euros and dollars to rubles. The proceedings were justified with an alleged “economic war” in the West.
Payments in euros or dollars worthless
Putin justified his ruble initiative by saying “that the Bank of Russia’s foreign exchange reserves have been frozen by European Union member states in violation of the norms of international law”. This was the EU’s response to Russia’s war against Ukraine. Putin then said that payments in euros and dollars now had no value for the country.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
