Gradual conversion: Russia: gas does not have to be paid immediately in rubles

gradual conversion
Russia: gas does not have to be paid immediately in rubles

Just last week, Moscow sparked a row when it announced that it would only supply gas for payment in rubles. Germany and other G7 countries reject the demand. Now Russia is backing down – the decision should not be implemented immediately.

Russia will not immediately implement the required payment for gas supplies in rubles. According to the Russian Presidential Office, the change should be carried out gradually. The dollar as a world reserve currency has had its moment, so payments in the respective national currencies are inescapable.

Putin announced last week that Russia would only deliver gas to Germany and other “hostile countries” if they were paid in rubles. This would support the troubled Russian currency as importing countries would have to get hold of rubles. The Kremlin chief had given the central bank and the Russian government a week to work out the modalities for switching from payments in foreign currency to payments in rubles.

However, the G7 group of economic powers, including Germany, as well as the European Union as a whole, oppose ruble payments for gas. The corresponding demands are “a unilateral and clear breach of existing agreements”, said Federal Minister for the Economy, Robert Habeck, after a meeting of the G7 energy ministers. Germany currently chairs the group, which also includes France, Italy, Japan, Canada, the US and the UK.

Just yesterday, Kremlin spokesman Dmitry Peskov insisted on the announcement that gas would only be supplied to Europe in the future in exchange for rubles. Peskow said “no one” would give away free gas, it was “simply impossible.” “And you can only pay in rubles,” he continued. The affected companies must understand that in view of the “economic war against Russia” a completely new environment has emerged. However, Russia remains a reliable supplier.

Vince Fernandez

"Professional food trailblazer. Devoted communicator. Friendly writer. Avid problem solver. Tv aficionado. Lifelong social media fanatic."

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