Foreign Gas Buyers must pay in Rubles: Putin

The President of Russia, Vladimir Putin stated that it is mandatory for all the foreign buyers of Russian gas to pay in rubles.

Russian President Vladimir Putin has mandated that all foreign buyers of Russian gas pay in rubles beginning Friday. President Putin has warned the importers of Russian gas to settle all their amounts in rubles, or else get their supplies cut off.  

The European Union has rejected this demand by Putin. Whereas, Germany has termed the condition “blackmail”. The European Union is a huge importer of Russian gas supplies, in which Germany alone relies heavily on Russia’s gas supplies. Germany has already activated an emergency plan which could lead to restricting Europe’s largest economy. 

Putin’s sole hope of evading sanctions

Beginning Friday, Russian President Vladimir Putin has mandated that all foreign buyers of Russian gas pay in rubles. President Putin has warned the importers of Russian gas to settle all their amounts in rubles, or else get their supplies cut off.  

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Furthermore, “If such payments are not made, we will consider this a default on the part of the buyers, with all the ensuing consequences. Nobody sells us anything for free, and we are not going to do charity either-that is, existing contracts will be stopped, “he said. 

What additional options exist for the world?

Italy has confirmed that it is in constant contact with the European Union and is able to give a firm reply to Russia. Further, Italy has said that its own gas reserves can help survive the country’s economy if Russia disrupts the gas supplies.  

Meanwhile, Germany is the nation that depends heavily on Russian gas supplies. Germany’s energy firms are in contact with Berlin to discuss the alternatives if Russia stops gas exports.  

Western firms and governments have also refused to pay in rubles for Russian gas imports. Most European buyers use euros to pay. Further, experts suggest that it will take forever to negotiate terms with Russia.

Published By: Manan Khurana

Edited By: Subbuthai Padma