Kremlin Says Russia Will Not Supply Gas To Europe For Free

Reuters: Russia will not supply gas to Europe for free, Kremlin says 

March 28 (Reuters) - Russia is working out methods for accepting payments for its gas exports in roubles and it will take decisions in due course should European countries refuse to pay in the Russian currency, the Kremlin said on Monday. 

At a meeting of European Union leaders on Friday, no common position emerged on Russia's demand last week that "unfriendly" countries must pay in roubles, not euros, for its gas in the wake of the United States and European allies teaming up on a series of sanctions aimed at Russia. 

Concerns over security of supply were enhanced after the demand, with companies and EU nations scrambling to understand the ramifications. 

The Russian central bank, the government and Gazprom , which accounts for 40% of European gas imports, should present their proposals for rouble gas payments to President Vladimir Putin by March 31.  

Read more .... 

Update #1: ‘Not engaged in charity’: Russia won’t supply gas to Europe for free, cautions Kremlin (TASS)  

Update #2: Kremlin Threatens To Halt Supplies As G7 Ministers Reject "Unacceptable" Demand To Pay For Gas In Rubles (Zero Hedge)  

WNU Editor: The G7 Have already said they will not pay for Russian natural gas in rubles .... G7 rejects Russian demand to pay for gas in rubles (RT). More here .... Germany: G7 rejects Russia's demand to pay for gas in rubles (AP). 

March 31 is the Kremlin's deadline for when this payment switch must occur .... Russia sets ruble gas payment deadline (RT). If it is not accepted, natural gas shipments will be stopped. 

My prediction. 

Europe is going to face a cut-off in natural gas. Sanctions have made all contracts null and void, and it is wishful thinking from European governments to believe that natural gas exports will be exempt. 

Fortunately for Europe. It is now springtime, and natural gas use will fall. So the rush will be to buy LNG from other countries this summer to top off their reserves for winter later this year. Unfortunately, and this is something that consumers better get prepared for, the price for this energy is going to be astronomical. 

In the end I agree with this analysis that Europe will be buying Russian natural gas in rubles .... Petro-Ruble: Why Western States Will End Up Buying Russian Gas for Rubles (Sputnik). Russian natural gas is cheaper and the infrastructure is already in place. Shipping in natural gas is prohibitively expensive, and it will take years and hundreds of billions of euros for Europe to build the infrastructure for alternative sources of energy.