Pay in Roubles, or I stop gas supplies, Putin threatens EU nations
Effective today, Friday, 1 April, 2022, Russian gas supplies will not be denominated in USD, but in Russian Roubles.
President Vladimir Putin gave the directive to all buyers of Russian gas, principally European countries, especially Germany, Italy, Spain and others, who depend about 40% on Russian gas. The EU has however commenced phased withdrawal of Russian gas, while the US has released gas supplies from its strategic reserves to cushion the shortfall.
By Putin’s directive of payment for gas in Russian currency, the rouble’s demand in the international market surges, hence strengthens, as Russia is the world’s largest exporter of gas, through the $11 billion Nordstrom 2 gas pipeline via Siberia.
UK has swiftly reacted not to comply with this directive. Germany reacted that there can be no “political blackmail” in gas purchases. The US has released an unprecedented 1 million barrels of oil from its strategic reserves.
Putin gave the directive, through a signed decree, of payment of gas supplies in Roubles by buyers to Russian banks.
Meanwhile, there has been continuous shelling of Ukrainian cities, despite assurances by Russia after intensive peace talks in Turkey.
