‘Unfriendly’ countries must buy gas in rubles

“I have decided to implement in the shortest possible time the package of measures to transfer the payments of natural gas that Russia provides to the so-called ‘unfriendly’ countries in rubles.”President Vladimir Putin said.

Putin noted that Russia will continue to supply gas to other countries according to the volume and price specified in previously signed contracts.

“I would like to emphasize that Russia certainly continues to supply natural gas in accordance with the volume and price, the pricing principles laid down in the previously signed contracts.” Putin added.

Putin also asked the Russian government to issue an appropriate directive, instructing the state oil corporation Gazprom to apply these changes to contracts.

The list of “unfriendly” countries and territories with Russia includes: USA, Canada, European Union (EU) countries, United Kingdom, Ukraine, Montenegro, Switzerland, Albania, Andorra, Iceland, Liechtenstein, Monaco, Norway, San Marino, North Macedonia, Japan, Korea, Australia, Micronesia, New Zealand, Singapore and the island of Taiwan (China).

This is considered the latest Russian response to Western sanctions. The West is freezing around $300 billion of Russia’s Central Bank, nearly half of Russia’s international reserves.

With Russia’s new decision, Europe will now have to buy hundreds of millions of euros worth of rubles a day. This will provide Russia with strong foreign currency flows, boosting demand for the ruble.

European countries are very dependent on Russian gas, so many countries in the EU cannot follow the US embargo on Russia’s energy industry. About 40% of Europe’s gas needs come from Moscow.

Recently, German Chancellor Olaf Scholz announced that he would continue to import energy from Russia, asserting that in the short term, Germany cannot eliminate energy supplies from Moscow.