Russian energy giant, Gazprom leaves German business following Putin’s demand for all foreign buyers to pay in Rubles against Russian gas supplies. The Russian energy giant, Gazprom, has decided to leave the German business market in the wake of the crisis between the two countries. Recently, Russian President Vladimir Putin mandated all foreign buyers to pay in Rubles for Russian gas.
The deteriorating economy of Russia relies heavily on its domestic currency, the Ruble. Another thing is that the huge sanctions the West has put on the Russian economy is making things very difficult for them. The European Union stands united, along with NATO, against the illegal invasion of Russia in Ukraine. Germany, being a part of the European Union, has also imposed certain sanctions on Russia.
In turn, Russia has also imposed sanctions on some entities, including President Biden of the US. Further, Putin issued a condition, starting from April 1st, where foreign buyers have to pay in Rubles for the gas they are importing from Russia. Above all, the European Union nations depend heavily on Russian gas supplies, especially Germany. The nations dismissed the statement by saying that Russia is just “blackmailing” the EU nations.
Gazprom, the Russian energy giant
The gas giant gave no details or explanation about its decision to leave the German branch of Gazprom Germania GMBH. It also took its assets with it, including subsidiaries in the United Kingdom, Switzerland, and the Czech Republic.
Further, the European Union alleged that Gazprom had been holding back the gas supplies that could have been utilised and released to lower the rising prices. Sources suggest that the EU antitrust authorities raided their offices earlier this week.
Experts suggest that Gazprom is trying to avoid its business ties in the European gas market and doesn’t want to continue being an active participant in it. Certainly, the energy giant does not feel welcome in the European market.
Furthermore, it feels quite clear that Gazprom has started to feel isolated, especially due to the current war situation. Gazprom could become a victim of the uncertain political environment in Europe. Thus, it wants to continue its business from just one place, which is St. Petersburg. Moreover, it has the support of the Russian government there too.
Published By: JAINAM SHETH
Edited By : KIRAN MAHARANA
