Putin ready to shut off Europe’s gas supply today unless paid in rubles – World News

Vladimir Putin could today cut off a third of Europe’s gas supply after governments rejected his demands to make payments in rubles, with Germany calling it blackmail

Putin said he signed a decree requiring foreign buyers to pay for Russian gas in rubles
Putin said he signed a decree requiring foreign buyers to pay for Russian gas in rubles

Russia could cut off a third of Europe’s gas supply today after governments rejected Vladimir Putin’s demand for a payment in rubles, in what Germany called “blackmail”.

Putin said he had signed a decree requiring foreign buyers to pay for Russian gas in rubles, and in a televised address claimed contracts would be stopped if those payments were not made.

It is the Russian leadership’s strongest response yet to the massive economic sanctions the West imposed on the country after invading Ukraine.

And a senior Russian foreign official said the European Union is being hit hard over the sanctions, RIA reported.

“The EU’s actions will not go unanswered… Brussels’ irresponsible sanctions are already having a negative impact on the daily lives of ordinary Europeans,” Nikolai Kobrinets told the news agency.

Russia supplies a third of Europe’s gas



European governments rejected Putin’s Friday ultimatum of payments in rubles, with the continent’s largest buyer of Russian gas, Germany, calling it “blackmail”. However, Moscow offered buyers a mechanism to receive rubles through a Russian bank.

The energy showdown has huge implications for Europe as US officials travel the globe to pressure Putin to stop a five-week invasion that has uprooted a quarter of Ukraine’s population.

Europe wants to wean itself off Russian energy, but that risks further inflation in fuel prices.

Russia has an important revenue stream at stake, even if it is hit by sanctions.

Faced with fierce opposition from the Ukrainian military, Putin has played one of his biggest cards in attracting European energy buyers.

“You need to open ruble accounts in Russian banks. Payments for delivered gas will be made from these accounts starting tomorrow,” Putin said.

Russia responds to EU’s tough economic sanctions


AFP via Getty Images)

“If such payments (in rubles) are not made, we consider this as default on the part of the buyers, with all the ensuing consequences … existing contracts will be stopped.”

As the war tightened global fuel prices, US President Joe Biden launched the largest-ever release of US oil reserves, urging the oil giants to drill more.

“This is a moment of consequence and danger for the world,” Biden said when announcing a release of 180 million barrels starting in May. But that amount doesn’t cover a US loss on Russian oil that Biden banned this month.

Western governments say Putin’s demand for payments in rubles is a breach of the contract in euros or dollars.

An order signed by Putin allows customers to send foreign currency to a designated account at Russia’s Gazprombank, which then returns rubles for the gas buyer to make the payment.

“Russia would have to physically stop gas flows into the EU-27 to force the issue, which would represent a major escalation that didn’t even happen at the height of the Cold War. It would be another severe financial blow to Russia’s coffers,” Fitch Solutions analysts said.

Continue reading

Continue reading Putin ready to shut off Europe's gas supply today unless paid in rubles - World News

Fry Electronics Team

Fry is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – The content will be deleted within 24 hours.

Related Articles

Back to top button