Europe announces refusal to pay for gas in rubles -

Europe announces refusal to pay for gas in rubles –

The European Union has offered an official response to Vladimir Putin, after announcing in public that it will accept the payment of gas supplies to European countries only in Russian rubles, not in euros or US dollars.

In the current context, European prime ministers say it is impossible to reach a joint agreement with Russia on the supply of natural gas in Russian rubles. Slovenian Prime Minister Janez Janša has said that the European Union refuses to pay for natural gas in Russian rubles, saying that no one in Europe knows “what the rubles look like”.

In his opinion, “Everywhere there are firm agreements in which the indication of the currency in which the payment is made is part of the contract. That is what should work, “said German Chancellor Olaf Scholz.

In addition, “This is in fact a breach of contract. Contracts are considered violated if this article is used by Russia, “said Italian Prime Minister Mario Draghi.

The Prime Minister of Belgium, Alexander de Croe, noted that the change could lead to a change in current fuel prices.

“If we change the terms of the contract, we can renegotiate everything, including the prices. For me, the most important thing is that prices fall “, said the Belgian Prime Minister Alexander de Croe, according to Antena 3.

Recall that the price of natural gas has recently risen by 18.9%, after Russia requested that payments for natural gas supplies to “unfriendly countries” in Europe be made in Russian rubles.

Vladimir Putin: Gas payments will be made in rubles

In this regard, “It does not make sense to supply goods from the Russian Federation to the EU and receive payment in their currency, gas payments will be made in rubles. We have decided to implement a series of measures to switch to ruble payments for Russian gas exported to unfriendly countries and to abandon all compromised currency transactions, “said Russian President Vladimir Putin, according to Ria Novosti.

He added that natural gas deliveries will comply with the prices previously set in the contracts concluded between Russia and Europe.

Specifically, at present, quotations on the main European TTF hub in the Netherlands have increased by 18.9% to $ 1374.69 per thousand cubic meters of gas. Following Vladimir Putin’s recent statement, the price jumped by 10%, according to ICE data from the London Stock Exchange.

According to ICU Group financial analyst Mykhailo Demkiv, the Kremlin now sees an opportunity to circumvent Western sanctions and maintain the national currency’s exchange rate in the face of Russia’s Central Bank’s blocked foreign exchange reserves.

So, “in other words, Russia is trying to offer a certain option in the hope that one of the European countries will join it, and thus weaken the unity of the West,” said Mykhailo Demkiv.