Russia sets ruble gas payment deadline

[_Nabil_]

31 Mar, 2022 13:20
HomeRussia & FSU

Putin sets deadline for ruble gas payments​

The measure will take effect on April 1

© Getty Images / FedotovAnatoly

Russian President Vladimir Putin has signed a decree, on Thursday, demanding ruble gas payments for buyers from so-called "unfriendly" countries. These are states which have placed sanctions on Moscow in connection with the ongoing conflict in Ukraine.

The measure takes effect on Friday and requires that buyers open accounts in Russian banks to facilitate the payments. Putin first flagged the move, last week, explaining that the West's seizure of a large amount of his country's foreign currency reserves meant that receiving euro or dollars for supplies was counter-productive.
“If unfriendly countries do not pay in rubles starting from April 1, we will consider this a default on gas contracts, in which case the existing contracts will be scrapped,” the president said.

Putin explained that Russia "supplied gas" to Western states which "paid us in euros, which they themselves froze.”
“This means that that we supplied the gas virtually free of charge,” he added. According to the Russian leader, his new decree represents a step towards the financial sovereignty of his country.

The ‘unfriendly’ states Putin referred to are the US, UK, Canada, Australia, Japan, Taiwan, South Korea, Switzerland, the 27 nations of the European Union, and a number of smaller countries.

READ MORE: What happens if Russia turns off the gas taps to Europe

The announcement instantly sent the ruble surging from historic lows against the US dollar and the euro, with the Russian currency recovering nearly all its losses since the military attack on Ukraine began over a month ago.

 

[The SC]

 

[Foinikas]

Only idiots still believe Putler's strogman tactics.Europe will pay in euros, Russia as a state will be finished in about a decade,reducing Muscovy down to size...

There's prophecies about Russia,but I doubt you're talking about that in your post

 

[8888888888888]

If Russia cannot use Euro, Russia will not send their gas and oil to Europe, they will stop the gas and oil being exported to Europe.

Russia industry will keep running while Europe cant, any way maybe this event will make Russia revamp their industry and not rely too much on oil and gas for their future economy.

That's the way it will happen.

 

[DF41]

Only idiots still believe Putler's strogman tactics.Europe will pay in euros, Russia as a state will be finished in about a decade,reducing Muscovy down to size...

Of course! They can use Euros to pay. Exchange those euros for good gold backed rubles at Gazprom bank.
Otherwise how else can they get the rubles to pay for gas and every other stuff they need from Russia?

What will be finished, and not in 10 years time, will be that evil entity USA.
It will be earlier than that. Much much earlier than that.
USA will spiral into total bankruptcy. Riots in all their cities and homelessness on sidewalks and streets.
Even now making homes in moving subway trains and foraging demanding food from other passengers.

AND IN TIME ERUPTING INTO FULL BLOWN CIVIL WAR
AND BREAKING UP INTO 50 LITTLE COUNTRIES AND FIGHTING WITH EACH OTHER WITH
ALL THE WEAPONRIES THEY CAN DEVICE.

 

[Shaheen123]

So Russia is going to back the Ruble with Gold which is a smart move. America will now spread freedom and democracy to a Gold producing country .

 

[mmr]

Of course! They can use Euros to pay. Exchange those euros for good gold backed rubles at Gazprom bank.
Otherwise how else can they get the rubles to pay for gas and every other stuff they need from Russia?

What will be finished, and not in 10 years time, will be that evil entity USA.
It will be earlier than that. Much much earlier than that.
USA will spiral into total bankruptcy. Riots in all their cities and homelessness on sidewalks and streets.
Even now making homes in moving subway trains and foraging demanding food from other passengers.

AND IN TIME ERUPTING INTO FULL BLOWN CIVIL WAR
AND BREAKING UP INTO 50 LITTLE COUNTRIES AND FIGHTING WITH EACH OTHER WITH
ALL THE WEAPONRIES THEY CAN DEVICE.

Lol are you ok?

All this uncertainty will cause global recession...food shortage...

 

[ahtan_china]

Putin: now everything is OK

 

[Han Patriot]

The one that should be called a kid is actually you who said Russia will allow the use of Euro to pay for their gas and oil despite you said Russia cannot use the money.

Who on Earth will be that stupid ????

Let me get this straight, the idiot says Russia will sell gas for free? Is he dumb is something?

 

[beijingwalker]

Putin tells Europe: Pay in roubles or we'll cut off your gas​

April 1, 2022

• Energy is Russia's most powerful lever against West
• Western nations reject currency switch in gas deals
• Russia won't export gas as 'charity', says Putin
• Europe already struggling to find alternative supplies

BERLIN/LONDON, March 31 (Reuters) - Russian President Vladimir Putin is demanding foreign buyers pay for Russian gas in roubles from Friday or else have their supplies cut, a move European capitals rejected and which Germany said amounted to "blackmail".

Putin's decree on Thursday leaves Europe facing the prospect of losing more than a third of its gas supply. Germany, the most heavily reliant on Russia, has already activated an emergency plan that could lead to rationing in Europe's biggest economy.

Energy exports are Putin's most powerful lever as he tries to hit back against sweeping Western sanctions imposed on Russian banks, companies, businessmen and associates of the Kremlin in response to Russia's invasion of Ukraine. Moscow calls its Ukraine action a "special military operation".

Putin said buyers of Russian gas "must open rouble accounts in Russian banks. It is from these accounts that payments will be made for gas delivered starting from tomorrow," or April 1.

"If such payments are not made, we will consider this a default on the part of buyers, with all the ensuing consequences. Nobody sells us anything for free, and we are not going to do charity either - that is, existing contracts will be stopped," he said in televised remarks.

It was not immediately clear whether in practice there might be a way for foreign firms to continue payment without using roubles, which the European Union and G7 have ruled out.

Italy said it was in contact with its European partners to give a firm response to Russia, adding its own gas reserves would allow economic activity to continue even in the event of disruptions.

Meantime, Germany's energy firms said they were in close talks with Berlin about how to respond to possible supply disruptions and draw up a roadmap on what to do should Russia stop gas exports.

SEARCHING FOR ALTERNATIVES

Under the mechanism decreed by Putin, foreign buyers would use special accounts at Gazprombank to pay for the gas. Gazprombank would buy roubles on behalf of the gas buyer and transfer roubles to another account, the order said.

A source told Reuters that payments for gas delivered in April on some contracts started in the second half of April and May for others, suggesting the taps might not be turned off immediately.

Putin's decision to enforce rouble payments has boosted the Russian currency, which fell to historic lows after the Feb. 24 invasion. The rouble has since recovered much lost ground.

"What sounded grandiose has turned into a storm in a teacup. By making it the main recipient of money for gas, it puts an extra shield against sanctions around Gazprombank," said Jack Sharples of the Oxford Institute for Energy Studies.

Western companies and governments have rejected any move to change their gas supply contracts to another payment currency. Most European buyers use euros. Executives say it would take months or longer to renegotiate terms.

Payment in roubles would also blunt the impact of Western curbs on Moscow's access to its foreign exchange reserves.

Meanwhile, European states have been racing to secure alternative supplies, but with the global market already tight, they have few options. The United States has offered more of its liquefied natural gas (LNG) but not enough to replace Russia.

"It is important for us not to give a signal that we will be blackmailed by Putin," Germany Economy Minister Robert Habeck said, adding that Russia had not been able to divide Europe.

Payments would continue to be made in euros, Germany said.

French economy minister Bruno Le Maire said France and Germany were preparing for the possibility of Russian gas flows being halted. He declined to comment on technical details linked to latest Russian demands for rouble payment.

Putin said the switch to roubles would strengthen Russia's sovereignty. He said the West was using the financial system as a weapon, and it made no sense for Russia to trade in dollars and euros when assets in those currencies were being frozen.

"What is actually happening, what has already happened? We have supplied European consumers with our resources, in this case gas. They received it, paid us in euros, which they then froze themselves. In this regard, there is every reason to believe that we delivered part of the gas provided to Europe practically free of charge," he said.

"That, of course, cannot continue," Putin said, although he said Russia still valued its business reputation and would continue to meet obligations in its gas and other contracts.

STAYING UNITED

European gas prices have rocketed higher on mounting tension with Russia raising the risk of recession. Companies, including makers of steel and chemicals, have been forced to curtail production. read more

British and Dutch gas prices , were up 4% to 5% after Putin's announcement.

European companies had little or no immediate comment on the Russian announcement or on their contracts with Gazprom (GAZP.MM), which has a monopoly on Russian gas exports by pipeline.

Poland's PGNiG (PGN.WA) said it remained in contact with Gazprom with which it has a long-term contract that expires at the end of this year, but it said it would not discuss details.

Italian energy firm Eni (ENI.MI), another major European buyer of Russian gas, also had no comment. It bought around 22.5 bcm of Russian gas in 2020. Its contracts with Gazprom expire in 2035.

Danish energy firm Orsted (ORSTED.CO), which has a long-term take-or-pay contract with Gazprom, said it was waiting to hear from the Russian firm and declined to comment further.

Uniper (UN01.DE) and EnBW's (EBKG.DE) VNG (VNG.UL), two major German buyers of Russian gas, declined to comment, while RWE (RWEG.DE) did not immediately respond.

Putin tells Europe: Pay in roubles or we'll cut off your gas

Russian President Vladimir Putin is demanding foreign buyers pay for Russian gas in roubles from Friday or else have their supplies cut, a move European capitals rejected and which Germany said amounted to "blackmail".

www.reuters.com

 

[Aasimkhan]

What is the latest ?

 

[beijingwalker]

Deadline day for EU: Putin to cut gas TODAY as he strikes huge deals with China and India​

VLADIMIR PUTIN has issued a chilling ultimatum to cut off EU gas supplies today unless the bloc agrees to his demands.​

By ANTONY ASHKENAZ
08:39, Fri, Apr 1, 2022 | UPDATED: 08:39, Fri, Apr 1, 2022

Putin to cut Russian gas TODAY as he strikes huge deals with China and India (Image: Getty)

In a speech last night, the Russian President warned that unless European nations open up ruble accounts in Russian banks, Moscow would terminate its gas contracts. This is an escalation of his previous threats, where Putin warned he is prepared to stop all gas supply contracts with "unfriendly" nations if bills are not paid in Russian rubles.

Russia is trying to boost its economy after Western sanctions hit the nation hard, and has also stated that it wants to reduce its reliance on the US dollar after Western nations froze many valuable Russian assets abroad.

Countries like Germany, the bloc’s largest economy, could face severe shortages in the near future if Putin decides to cut gas supplies.

The EU is heavily dependent on Russian gas, relying on Moscow for 40 percent of its energy needs.

This has made the continent vulnerable to Putin's influence, as he has squeezed gas supplies over the past year to apply political pressure on the bloc.

In the speech, Putin said: “Nobody sells us anything for free, and we are not going to do charity either – that is, existing contracts will be stopped.”

Berlin, which relies on Russia for up to 55 percent of its gas, insisted that it would not be “blackmailed by Putin”.

Meanwhile, Prime Minister Boris Johnson’s spokesman has said that the UK will refuse to purchase commodities like gas in rubles.

This standoff between Putin and the rest of Europe takes place as EU and China host their first joint summit since June 2020.

At this meeting, the EU will try to pressure China into taking a stance against Russia.

China has officially taken a neutral stance on the conflict in Russia and Ukraine, while it is accused of helping Moscow circumvent Western sanctions with new gas deals.

Experts have warned that China and Russia have three gas deals in the pipeline.

China is the world’s fastest-growing gas market, with the nation’s total natural gas imports increasing by 19.9 percent in the past year, with pipeline gas imports rising more than 22 percent year on year.

In the past year, China's natural gas imports from Russia rose by a massive 50.5 percent, as the two countries deepen ties.

Meanwhile, Russia has also turned towards India, with Delhi being tipped to buy15 million barrels of oil from Moscow at discounted prices.

Ahead of the summit, a senior EU leader said that it will ask Chinese Premier Xi Jinping to use his influence to end the conflict in Ukraine.

They also warned that they will intend to leverage their deals with China, saying: “Do you want to jeopardize this strong economic relationship; do you want to endanger the stability and growth prospects of the global economy and your own country?”

Deadline day for EU: Putin to cut gas TODAY as he strikes huge deals with China and India

VLADIMIR PUTIN has issued a chilling ultimatum to cut off EU gas supplies today unless the bloc agrees to his demands.

www.express.co.uk

 

[Aasimkhan]

lol, US is toast

 

[chinasun]

Russian rouble soars to 83 vs dollar before easing, stocks mixed​

Russian rouble soars to 83 vs dollar before easing, stocks mixed

The Russian rouble soared over 7% to 83 to the dollar in Moscow on Tuesday before paring some gains, hitting a more than one-month high near levels last seen before Russia sent troops into Ukraine, while stocks ended another volatile session in mixed fashion.

www.reuters.com

 

[Piotr]

Deadline day for EU: Putin to cut gas TODAY as he strikes huge deals with China and India​

VLADIMIR PUTIN has issued a chilling ultimatum to cut off EU gas supplies today unless the bloc agrees to his demands.​

By ANTONY ASHKENAZ
08:39, Fri, Apr 1, 2022 | UPDATED: 08:39, Fri, Apr 1, 2022

Putin to cut Russian gas TODAY as he strikes huge deals with China and India (Image: Getty)

In a speech last night, the Russian President warned that unless European nations open up ruble accounts in Russian banks, Moscow would terminate its gas contracts. This is an escalation of his previous threats, where Putin warned he is prepared to stop all gas supply contracts with "unfriendly" nations if bills are not paid in Russian rubles.

Russia is trying to boost its economy after Western sanctions hit the nation hard, and has also stated that it wants to reduce its reliance on the US dollar after Western nations froze many valuable Russian assets abroad.

Countries like Germany, the bloc’s largest economy, could face severe shortages in the near future if Putin decides to cut gas supplies.

The EU is heavily dependent on Russian gas, relying on Moscow for 40 percent of its energy needs.

This has made the continent vulnerable to Putin's influence, as he has squeezed gas supplies over the past year to apply political pressure on the bloc.

In the speech, Putin said: “Nobody sells us anything for free, and we are not going to do charity either – that is, existing contracts will be stopped.”

Berlin, which relies on Russia for up to 55 percent of its gas, insisted that it would not be “blackmailed by Putin”.

Meanwhile, Prime Minister Boris Johnson’s spokesman has said that the UK will refuse to purchase commodities like gas in rubles.

This standoff between Putin and the rest of Europe takes place as EU and China host their first joint summit since June 2020.

At this meeting, the EU will try to pressure China into taking a stance against Russia.

China has officially taken a neutral stance on the conflict in Russia and Ukraine, while it is accused of helping Moscow circumvent Western sanctions with new gas deals.

Experts have warned that China and Russia have three gas deals in the pipeline.

China is the world’s fastest-growing gas market, with the nation’s total natural gas imports increasing by 19.9 percent in the past year, with pipeline gas imports rising more than 22 percent year on year.

In the past year, China's natural gas imports from Russia rose by a massive 50.5 percent, as the two countries deepen ties.

Meanwhile, Russia has also turned towards India, with Delhi being tipped to buy15 million barrels of oil from Moscow at discounted prices.

Ahead of the summit, a senior EU leader said that it will ask Chinese Premier Xi Jinping to use his influence to end the conflict in Ukraine.

They also warned that they will intend to leverage their deals with China, saying: “Do you want to jeopardize this strong economic relationship; do you want to endanger the stability and growth prospects of the global economy and your own country?”

Deadline day for EU: Putin to cut gas TODAY as he strikes huge deals with China and India

VLADIMIR PUTIN has issued a chilling ultimatum to cut off EU gas supplies today unless the bloc agrees to his demands.

www.express.co.uk

This article is English propaganda. AFAIK Russia is not going to cut gas deliveries today. They just demand that starting from today unfriendly countries pay for gas delivieries in Rubles. Gazprom will stop delivieries of gas only if it will not receive payment in Rubles in next weeks.
AFAIK Gazprom is to receive first payments for contracts in Rubles in the second half of April and in May