Not quite what it seems, perhaps. It looks like a device to convert foreign currency into rubles to get round sanctions. But countries like Germany, which has placed heavy bets on gas by getting rid of coal and nuclear power and throwing fortunes at renewables, must be feeling the pressure and checking their gas storage levels.
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“Unfriendly countries” must start paying for Russian gas in rubles, or their supplies will be cut, Moscow has said.
The decree, published on Thursday by state media, came a day after the leaders of Italy and Germany said they received assurances from President Vladimir Putin, reports ITV News.
Mr Putin talked tougher, saying that starting from Friday, Russia will start accepting ruble payments from Western countries that imposed sanctions over its invasion of Ukraine.
He said contracts will be stopped if buyers don’t sign up to the new conditions, which include opening ruble accounts in Russian banks.
European leaders had previously rejected paying for deliveries in rubles, saying it would undermine sanctions imposed because of the war in Ukraine.
The decree President Putin signed was published by state news agency RIA Novosti, and says a designated bank will open two accounts for each buyer, one in foreign currency and one in rubles. The buyers will pay in foreign currency and authorise the bank to sell that currency for rubles, which are placed in the second account, where the gas is formally purchased.
Boris Johnson’s office has said Russia’s conditions showed “the impact that our sanctions are having on the Russian economy”.
Asked if there were any circumstances in which the UK would pay for gas in rubles, the PM’s spokesperson said “that’s not something that we will be looking to do.
“There are no gas pipes directly linking the UK with Russia, our imports from Russia made up less than 4% of total UK gas supply in 2021, so we are obviously less reliant on it than many of our European partners.”
Full report here.
via Tallbloke’s Talkshop
March 31, 2022, by oldbrew
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