After Putin’s announcement
Scholz rejects gas payments with rubles
03/24/2022, 8:01 p.m
Anyone who wants Russian gas in the future will have to pay in Russian money. This is what Kremlin chief Putin has announced. While this causes confusion for some, Chancellor Scholz is not worried. He refers to the existing contracts.
Chancellor Olaf Scholz reacted calmly to the announcement by Russian President Vladimir Putin that he would only want gas deliveries to certain countries to be paid for in the national currency, the ruble. The currency in which payment is made is specified in the existing contracts, said Scholz after a G7 summit in Brussels. “That’s something that also applies. And it usually says euros or dollars. Those are the starting points we have to assume.”
Russian President Vladimir Putin announced on Wednesday that gas deliveries to “unfriendly states” would only be billed in rubles. This would support the troubled Russian currency as importing countries would have to procure roubles.
According to Russia, the affected countries include Germany and all other states of the European Union, as well as the USA, Canada and Great Britain. The government and central bank were given a week to finalize the modalities of the changeover. Germany is one of the countries that are particularly dependent on Russian energy supplies.
Polish group: “Contract determines payment method”
The Polish energy company PGNiG has already announced that it does not want to pay in the Russian national currency, despite Putin’s announcement. The group will continue to settle the purchase of Russian gas according to the current contract and will refuse payments in rubles.
“The contract, the details of which I cannot disclose, determines the method of payment,” said PGNiG boss Pawel Majewski, according to the Polish news agency PAP. “It is not intended that any party can change them at will,” he added. “We will fulfill this contract according to our obligations,” emphasized Majewski.
The current contract, also known as the “Yamal Contract”, expires at the end of the year. Poland intends to soon completely rid itself of its dependency on Russian gas, primarily with the help of the Baltic Pipe gas pipeline, through which Poland intends to supply itself with Norwegian gas, and via the liquefied natural gas (LNG) gas terminal in the port of Świnoujście (Swinoujscie). .