Putin Tells Europe: Pay In Rubles For Russian Energy Exports Or Face A Cut-Off

 

Daily Mail: Putin threatens to turn off Europe's gas supplies TOMORROW if countries refuse to pay in roubles, saying 'We get nothing free of charge and we are not going to engage in charity either' 

* Russia's Putin today threatened to close down European gas from tomorrow is states refuse to pay in roubles 

* He said foreign buyers will have to 'open rouble accounts in Russian banks' which can be used to pay for gas

* According to Gazprom, 58 per cent of its sales of natural gas to Europe as of January 27 were settled in euros 

* German Economy Minister Robert Habeck today rejected the demand, saying that it amounted to 'blackmail' 

* Spokesperson for Prime Minister Boris Johnson said companies are not planning to buy Russian gas in roubles 

* Putin announced on March 23 that 'unfriendly' states would have to pay in roubles in retaliation for sanctions 

Vladimir Putin today threatened to turn off Europe's gas supplies from tomorrow if countries refuse to pay in roubles. 

The Russian President, announcing a decree in televised remarks, said foreign buyers would have to 'open rouble accounts in Russian banks' which can be used to pay for 'gas delivered starting from tomorrow'. 

 'If such payments are not made, we will consider this a default on the part of buyers, with all the ensuing consequences. 

Nobody sells us anything for free, and we are not going to do charity either - that is, existing contracts will be stopped,' he said.  

Read more ....  

WNU editor: The Kremlin Thursday published a presidential decree outlining the mechanism for Europe to buy Russian natural gas. It basically allows foreign buyers to convert their dollars and euros into the Russian currency through a state-controlled bank that is not under sanctions (Gazprom Bank). 

But what a difference 24 hours makes. Yesterday the German Chancellor signaled his willingness to abide by the mechanism of payment that Putin offered. No more now. France and Germany have now signaled that they will only pay for Russian natural gas with Euros, a currency that Russia cannot receive or use because of sanctions .... Germany and France react to Russia’s gas-for-ruble demand (RT). More here .... Germany to pay for gas in euros despite Russia’s rouble decree, says Scholz (The Guardian). 

For now the gas will not be shut-off .... Putin Says Russia to Keep Supplying Gas Amid Shift to Rubles (Bloomberg). But if Europe does not pay for this gas, it is only going to be a matter of time before the gas will be cut-off. 

Update: I just heard on Russian news that Gazprom Bank, a Russian state-owned bank that is not under sanctions and is the institution that will be used to convert Euros to rubles, is going to be facing sanctions in the coming days from the U.S.. If that happens, I am 100% certain that Russia will stop all shipments of natural gas and oil to Europe. 

If natural gas and oil shipments to Europe are cut-off, it will be a disaster for the European economy. Europe will be facing energy rationing, exploding inflation to levels that have not been seen for decades, high interest rates that most European countries cannot afford, and high unemployment. This will be a continent-wide crisis with global consequences.  

Update #2: Putin does not bluff .... Putin says Russia will enforce rouble payments for gas from Friday (Reuters). 

My prediction is that nothing will be done now. But in the coming months (probably at the end of summer) Russia will be putting the squeeze on Europe and other countries to pay for their energy/food/and other commodities in rubles. The next 4 - 6 months are going to be very stressful for every European government.

Russian President Putin Tells Europe To Pay In Rubles For Russian Energy Exports  

Russia will view refusal of paying for gas in rubles as breach of contract — Putin -- TASS  

Putin: Existing Contracts on Russian Gas Will Be Frozen If They Aren't Paid in Rubles -- Sputnik  

Putin sets deadline for ruble gas payments -- RT 

Putin tells Europe: pay in roubles or we'll cut off your gas -- Reuters 

Putin Warns EU Nations Need Ruble Accounts to Get Gas -- AFP  

Russia: Gas payments must be made via Russian bank accounts -- DW 

Russia raises stakes in energy standoff by insisting on rubles for gas -- CNN  

Putin signs order demanding gas payments in roubles from Friday -- The Guardian  

Russia-Ukraine live news: Moscow outlines gas for roubles demand -- Al Jazeera  

Ukraine war: Putin demands payment in roubles for Russian gas supplies or contracts will be 'stopped' -- SKY News  

Putin threatens to cut gas exports unless countries pay in rubles -- Axios  

What paying for gas in rubles means for foreign buyers -- RT  

Factbox: What happens if Russia turns off gas to Germany? -- Reuters