Russian President Vladimir Putin on Thursday warned that “unfriendly” countries, including all EU members, would be cut off from Russian gas unless they opened bank accounts in rubles for payments.
“If such payments are not made, we will consider this a breach of obligations on the part of our buyers, with all the ensuing consequences,” Putin said during a televised government meeting.
The decree requires foreign buyers to pay through Gazprombank, which would convert payments made in euros or dollars into rubles before transferring them to buyers’ accounts.
Germany and France Push Back
Germany and France swiftly rejected Putin’s demand, calling it a violation of contracts and accusing Moscow of using gas as a weapon.
German Economy Minister Robert Habeck said Berlin was prepared for all scenarios, including a complete stoppage of Russian gas flows.
“It is important for us not to give a signal that we will be blackmailed by Putin,” Habeck said.
French Finance Minister Bruno Le Maire, speaking in Berlin, said both countries were preparing for the possibility that Russia could halt supplies altogether.
German Chancellor Olaf Scholz also stressed that contracts clearly specify payment in euros or dollars.
Sanctions and Economic Pressure
Western nations have imposed sweeping sanctions on Russia over its invasion of Ukraine, including freezing around $300 billion of Moscow’s foreign reserves.
The United States has already banned Russian oil and gas imports, while the EU—heavily reliant on Russia for 40% of its gas in 2021—plans to cut imports by two-thirds this year.
US State Department spokesperson Ned Price said the demand for ruble payments showed Moscow’s “economic desperation.”
Kremlin’s Position
Kremlin spokesman Dmitry Peskov insisted the new mechanism would not affect prices, saying buyers could still pay in foreign currency, which Gazprombank would then convert into rubles.
Meanwhile, Russia has already ordered exporters, including Gazprom, to convert 80% of their revenues into rubles to shore up its currency amid sanctions.
