Putin: Gas supply will be stopped without payment in rubles! Effective April 1st
According to relevant documents published on the Kremlin's website, from April 1, companies from "non-friendly countries" with Russia should first open a ruble account in a Russian bank, and then pay for Russian gas purchases through this account. Gazprom Bank, as an authorized bank, opens a special account in rubles for payment of purchased natural gas by foreign parties upon the application of foreign buyers. According to the gas supply contract payment deadline expires, if the foreign buyer does not pay or pay in foreign currency, and/or not pay in full, and/or pay to an unauthorized bank account, etc., will be deemed by the Russian side as In default, Russian suppliers will stop supplying natural gas.
Putin said on the same day that the various risks arising from the use of US dollars and euros for natural gas transactions are unacceptable to Russia. "We will not provide any product to anyone for free, and we do not do charity." He emphasized that gas transactions are paid in rubles, which is an important step in stabilizing Russia's fiscal and economic sovereignty. "We will continue to move in this direction consistently and systematically within the framework of our long-term plan to increase the share of settlements in foreign trade in the currency of our national currency and that of reliable partners."
Leaders of Germany, France, Italy and other countries had phone calls with Putin a few days ago to communicate Russia's request to switch to the ruble as the currency for natural gas transactions. At present, except for a few countries such as Bulgaria and Moldova, which agree to pay in rubles, most European countries are opposed to this. The G7 had previously made it clear that it rejected the Russian proposal.
According to professionals, payments in rubles cannot be frozen, confiscated, seized, etc., also to stabilize the ruble exchange rate situation under the pressure of sanctions. Russian gas is settled in rubles, and in theory the risk falls on European consumers. In this way, European buyers are likely to file lawsuits in international courts.
