Gradual conversion
Russia: Gas does not have to be paid for immediately in rubles
03/30/2022, 12:23 p.m
Just last week, Moscow caused a quarrel when it announced that it would only supply gas for payment in rubles. Germany and other G7 countries reject the demand. Now Russia is rowing back – the decision should not be implemented immediately.
Russia will not immediately implement the required payment of gas supplies in rubles. According to the Russian Presidential Office, the changeover should take place gradually. The dollar as a global reserve currency has had its day, so payments in the respective national currencies are unavoidable.
Putin announced last week that Russia would only deliver gas to Germany and other “unfriendly countries” if they were paid in rubles. This would support the troubled Russian currency as importing countries would have to procure roubles. The head of the Kremlin had given the central bank and the Russian government a week to determine the modalities for switching from foreign currency payments to ruble payments.
However, the group of G7 economic powerhouses, including Germany, as well as the European Union as a whole, oppose payments in rubles for gas. Corresponding demands are “a unilateral and clear breach of the existing agreements,” said Federal Minister of Economics Robert Habeck after a meeting of the G7 energy ministers. Germany currently chairs the group, which also includes France, Italy, Japan, Canada, the US and the UK.
Just yesterday, Kremlin spokesman Dmitry Peskov insisted on the announcement that in future gas would only be supplied to Europe in return for rubles. Peskow said that “nobody” would deliver gas for free, it was “simply impossible”. “And it can only be paid in rubles,” he continued. Affected companies must understand that in view of the “economic war against Russia” a completely new environment has emerged. Nevertheless, Russia remains a reliable supplier.