Russian President Vladimir Putin today signed a decree regulating natural gas trade with countries considered “hostile” such as the United States and all members of the European Union.
According to the Russian government, the text will enter into force from tomorrow (1) and require Western companies to open ruble current accounts with Russian banks for the purchase of gas in the country.
“If these payments are not made, we will consider default on the part of the buyers, with all the following consequences,” Putin said.
Nobody sells us anything for free, and we don’t do any charities either. This means that existing contracts will be discontinued, in the event of non-payment in rubles.
Russian President Vladimir Putin
Just a day earlier, Putin informed Italian Prime Minister Mario Draghi that existing agreements would be respected. Russia supplies Europe with about a third of the gas.
The move is a form of retaliation against countries that have imposed economic sanctions on Russia – about $300 billion of Russian reserves are held abroad – and is also an attempt to strengthen the ruble against the background of a deep recession and financial crisis.
The decision to impose payments in rubles bolstered the Russian currency, which plunged to historic lows after the February 24 invasion but has since recovered.
The US and UK have already announced a ban on Russian oil and gas imports, but the EU is more dependent on Moscow for energy.
The bloc countries are working to reduce this dependence, but this is a medium and long-term goal – Italy, for example, expects up to 30 months to become gas-independent from Russia.
Last week, the European Union had already reached an agreement to increase imports of LNG from the United States. Putin declared that “the United States wants to solve its problems at the expense of others. It is trying to get Europe to buy American gas, which is more expensive.”
Western countries respond to the Russian decision
Following the Russian president’s announcement, German Chancellor Olaf Schulz said companies in the country would continue to honor their contracts in euros.
“We looked at the contracts and wrote that the payment in euros I explained in the phone call [com Putin] It will remain that way, said the German prime minister, who spoke with Putin yesterday.
French Economy Minister Bruno Le Maire stressed that his country “will not, in any way, accept payment for gas in currencies other than those stipulated in the contract.”
Le Maire also confirmed that the French government was already preparing for a final supply disruption.
* With ANSA, Agence France-Presse and Reuters
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