Only rubles as payment
Putin announcement irritates gas association
03/23/2022, 5:47 p.m
Kremlin boss Putin has announced that anyone purchasing Russian gas will have to pay for it in rubles in the future. The weakening currency is thus promptly strengthened, which leaves questions at the German industry association.
The announcement by Russian President Vladimir Putin that gas deliveries from Russia will in future have to be paid for in rubles was met with incomprehension in the German gas industry. “It was with great irritation that we heard the report that Russia only wants to process gas deliveries in rubles,” said Timm Kehler, the board of directors of the industry association Zukunft Gas.
“At this point in time, we cannot yet assess what specific effects this will have on gas trading.” However, it gives the impression that the sanctions are working and that Putin is increasingly coming under pressure.
Putin had instructed the government to stop accepting payments in dollars or euros. Deliveries would continue to be fully guaranteed, the Kremlin chief assured in a government video conference that was broadcast on state television.
Payment for Russian goods in foreign currency has lost its meaning. Accordingly, the “unfriendly states” held by Russia on a black list are affected. This includes Germany and all other EU countries, but also the USA, Canada and Great Britain. The announcement promptly strengthened the Russian currency, which is under enormous pressure.