Russia’s Deputy Foreign Minister Sergei Ryabkob is urging European countries to change their minds about paying for Russian gas in rubles. He describes the West’s sanctions as a “desperate economic war”.
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In response to the West’s major sanctions against Russia as a result of the invasion of Ukraine, President Vladimir Putin has demanded that natural gas exported to Europe and the United States be paid for in Russian rubles.
On Monday, the G7 countries agreed to refuse to do so. Vladimir Putin’s spokesman, Dmitry Peskov, threatened on Tuesday that Russia will not supply gas to Europeif the West will not comply with the requirement.
On Wednesday, the Russian news agency Tass reports that Putin, after talks with German Chancellor Olaf Scholz will let Europe continue to pay for Russian gas in euros anyway.
According to spokesman Steffen Hebestreit from the German government, Putin has said that from next month Europe will continue to pay in euros to Gazprom’s bank, which is not affected by the western sanctions, writes NTB.
The bank will then convert the payments into rubles, Putin is said to have stated.
However, Scholz did not agree with this solution, but asked for written information to better understand the procedure, writes Reuters.
Scholz further said that the G7 countries will continue to pay exclusively for energy supplies in euros or US dollars, as the agreement dictates. European authorities believe that Russia does not have the right to change the trade contracts that have been set.
The EU is the world’s largest importer of gas – and 41 percent of this gas comes from Russia. At the same time, revenues from the sale of gas and oil are very important for Russia.
–Hope Europe changes its mind
Sergei Ryabkov, Russia’s deputy foreign minister, said on Wednesday that he hoped Europe would change its mind about paying for Russian gas in rubles instead of the euro, writes the Russian news agency RIA.
If Western importers have to pay in rubles, it will indirectly support the Russian ruble, as buyers will have to obtain rubles to buy gas. The exchange rate has weakened sharply as a result of the invasion of Ukraine.
The Deputy Foreign Minister also states that he hopes that the West will end the strong economic sanctions imposed on Russia.
– I hope Russia will not continue to be met by the West’s desperate economic war. says Ryabkob.
He also says he wants Europe to find a “creative” solution to the problem.
–Can be extended to other items
Russian officials have claimed that the West’s attempt to isolate one of the world’s largest producers of natural resources is an “irrational” and “self-harming” act, which will lead to high prices for consumers and tip the economies of Europe and the United States, writes Reuters.
Earlier Wednesday, natural gas prices rose by more than 15 percent after the German government activated a crisis plan which, according to The Financial Times, is the first step towards a rationing of energy resources.
Fuel prices have also risen sharply in both Europe and the United States recently. according to BBC Among other things, many Americans travel across the border to Mexico to buy cheaper gasoline.
If payment for Russian gas has to be made in rubles, the practice could also be extended to the export of oil, grain, metal, fertilizer, coal and timber to the EU, according to Vyacheslav Volodin, Russia’s supreme legislator.
– If you want gas, find rubles, he wrote in a post on the messaging service Telegram on Wednesday.
The Kremlin originally announced that a new mechanism for paying in rubles would be introduced by March 31.
However, Kremlin spokesman Peskov said on Wednesday that the change will not take effect immediately.
– Payments and delivery a time consuming process. This does not mean that tomorrow’s delivery will have to be paid in rubles. From a technological point of view, this is a more lengthy process.
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