Russia threatens to stop supplying gas if not paid in roubles
Russia threatens to stop supplying gas if not paid in roubles
Published
14 minutes ago
Related Topics
IMAGE SOURCE,GETTY IMAGES
Russia has told foreign countries they must start paying for its gas in roubles or it will halt supplies.
Vladimir Putin has signed a decree stating buyers must "must open rouble accounts in Russian banks" from Friday.
"Nobody sells us anything for free, and we are not going to do charity either - that is, existing contracts will be stopped," the Russia president said.
Mr Putin's demand for rouble payments is an attempt to boost the currency, which has been hit by sanctions.
Western companies and governments have rejected Russia's demands to pay for gas in roubles as a breach of existing contracts, which are set in euros or US dollars.
Since Russia invaded Ukraine, Western nations have issued economic and trading sanctions on Russia, but the European Union has not placed bans on oil or gas, unlike the US and Canada, as its member nations rely heavily on it.
Germany, which gets about half its gas and a third of its oil from Russia, has urged its citizens and companies to reduce consumption in anticipation of possible shortages, while Austria, which imports about 40% from Russia, is tightening its monitoring of the gas market.
In response to Putin's latest announcement, Germany and France said the move amounted to "blackmail".
Mr Putin said the switch to roubles was meant to strengthen Russia's sovereignty, and it would stick to its obligations on all contracts, if Western nations obliged.
The sudden move comes after Moscow appeared to soften its stance on Wednesday over demanding rouble payments, saying they would be introduced gradually.