The government is preparing a “black list”
The decree on counter-sanctions, signed by Vladimir Putin on May 3 and already in force, will allow Russia to legally stop gas supplies to countries that refuse the ruble settlement scheme proposed by the Kremlin and continue to pay in euros. The document expressly prohibits the fulfillment of contractual obligations to companies from the “black list”. The President gave the Cabinet of Ministers 10 days to compile such a list: by this moment it will be clear for sure who agreed to the rubleification of settlements and who did not.
Moscow has been slow to respond to Western sanctions for quite some time. Until recently, restrictive measures were taken only once morest individuals – leaders, officials and parliamentarians from the United States, Great Britain, Japan and other unfriendly countries. And foreign companies in the overwhelming majority of cases themselves were the initiators of the break in relations with Russia. And now, Vladimir Putin’s new decree opens up the opportunity for a mirror response, instructing the government to draw up a list not only of individuals, but also of legal entities, with whom it will be prohibited to conclude transactions and fulfill obligations under previously concluded contracts. Presidential spokesman Dmitry Peskov specifically clarified that we are talking regarding private companies as well. “The form of ownership does not matter. There are both individuals and legal entities, too, ”said the Kremlin speaker, explaining to whom the decree on counter-sanctions will apply.
It is noteworthy that in the document signed by Putin, the counter-sanctions in the spirit of the times are called “reciprocal special economic measures.” And their use is explained by “unfriendly and contrary to international law actions of the United States and foreign states that have joined them”, aimed at depriving the Russian Federation of ownership, Russian companies and citizens of the Russian Federation (in other words, this is, among other things, a response to the expropriation from businessmen of their aircraft, yachts and overseas properties). Counter-sanctions, the document says, are necessary to “protect the national interests” of the country.
By his decree, the president forbids making deals, entering into new and fulfilling existing foreign trade contracts with the persons involved from the “black list”, as well as supplying them with raw materials and other products and carrying out financial transactions, “the beneficiaries of which are persons (citizens and companies. – «MK») under sanctions. Obviously, this wording, if desired, can also include the nationalization of the property of foreign companies that have left the Russian Federation, which has long been called for in the State Duma. And the non-repayment of loans that Russian business once took from European banks. And the embargo on the export of agricultural products, which former Prime Minister Dmitry Medvedev recently threatened Europe. And, finally, the most important thing is the refusal to fulfill obligations under gas contracts. “All modalities are determined by the Cabinet of Ministers,” Dmitry Peskov emphasized.
Attention is drawn to the 10-day period by which the government, by order of Putin, must prepare a “black list” of persons falling under counter-sanctions. According to Deputy Prime Minister for Energy Alexander Novak, just in mid-May, when the main payments for April deliveries arrive, it will be clear who agreed to pay for gas in rubles according to the scheme proposed by the Kremlin, and who refused to do so. The statements of politicians here do not matter much. What is important is how specific contractors who entered into agreements with Gazprom will act. And those who refuse rubleification have every chance of being on the “black list” of the Cabinet of Ministers with all the ensuing consequences: Russia will not only be able to turn off the valve, but to do it on the basis of Putin’s decree, which directly prohibits fulfilling obligations to such structures.
Notably, European Energy Commissioner Kadri Simson said on May 2 that she had not heard of any European energy company preparing to bow to Moscow’s demands. Czech ČЕZ, Danish Orsted, Estonian Eesti Gaas, Latvian Latvijas gāze and Italian Eni have already publicly refused to pay in rubles. All contractors intend, in accordance with the terms of the contracts, to continue to pay in euros, and in the event of a cessation of supplies, apply to the courts, which in the current situation are unlikely to side with Russia.
Newspaper headline:
Putin’s Mirror Decree
