Putin announced last week that “unfriendly countries” could only settle gas transportation costs in rubles. Figure: Retrieved from KremlinRussia Twitter (file photo)
Russia’s aggression against Ukraine was criticized by the international community, and Europe and the United States immediately imposed severe sanctions. However, Europe relies heavily on Russian gas for heating and power generation. Russian President Vladimir Putin recently asked “unfriendly countries” to pay for Russian gas in rubles, but Germany, representing the G7, categorically refused. The Kremlin warned that Russia “will not give away gas for free”, while the G7 insisted that Russia abide by the contract.
Putin announced last week that “unfriendly countries” could only settle gas transportation costs in rubles. The exchange rate of the ruble, which has depreciated sharply due to Western sanctions, can also recover when importing countries have to buy the ruble. Germany is also listed as an “unfriendly country” by Russia, and so far Germany has paid for Russian gas transportation in euros.
German Federal Economy Minister Robert Habeck said after a virtual meeting with G7 energy ministers that the G7 refused to pay for gas in rubles. Germany currently holds the rotating presidency of the G7, and other members include France, Italy, Japan, Canada, the United States and the United Kingdom. The European Union also participated in this round of online meetings, Harbeck said.
Harbeck said the G7 ministers agreed that Russia’s request for payment in rubles was a “unilateral and clear violation of existing agreements”, that the signed contract was still valid and that all companies involved must abide by the contractual norms. “It means paying in rubles is unacceptable,” he noted, reminding that “Putin is trying to divide us, it’s obvious.” He added: “We won’t divide ourselves, and the answer from the G7 is clear. , the agreement will be followed.”
German Chancellor Schotz also made the same statement when referring to Putin’s statement a few days ago. He said that after reviewing the relevant contract, it was confirmed that it could be paid in euros or dollars. Schotz also again defended the EU’s failure to ban Russian energy imports. He mentioned that it must be taken into account that many countries are more dependent on Russia for oil and gas than Germany.
It is unclear whether Russia will withdraw its request to pay for gas shipments in rubles, and Kremlin spokesman Dmitri Peskow declared: “We will not give gas for free, that’s clear.” He also sarcastically : “Under the current circumstances, it is impossible and appropriate for us to engage in charitable activities (for European customers).”