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After a month of being pummelled with financial sanctions by the west, Vladimir Putin has sought to wield a financial weapon of his own.
The Russian president announced on Wednesday evening that “unfriendly” countries will soon be required to pay for Russian gas in roubles.
To aid understanding, Mr Putin also published a list of those “unfriendly” countries, comprising the United States, the 27 members of the European Union, the UK, Japan, South Korea, Norway, Singapore, Switzerland and Ukraine.
He said: “It is absolutely clear, though, that given the circumstances, it makes no sense for us to supply our goods to the EU or the US and be paid in dollars, euros or certain other currencies.
“So, I have decided to implement, in the shortest possible time, a package of measures to transfer payments, to begin with, for natural gas supplied to ‘unfriendly countries’ to Russian roubles; that is, we will not accept any compromised currency to be used in these transactions.
“At the same time, on a separate note, I would like to note that Russia will continue to supply natural gas in the agreed to volumes and for the agreed-on prices as indicated in the existing contracts.
“Unlike some of our colleagues, we value our business reputation as a reliable partner and supplier.”
The measure – which specifically covers gas but not oil – was accompanied by news that Roscosmos, Russia’s space agency, will also be insisting on payment in roubles from now on. It sent the rouble to a three week high against the US dollar as well as sending some natural gas contracts up by between 15-20% immediately after the announcement.
Russia is estimated to rake in up to $800m every day from its sales of gas to Europe. Of this, some 58% is paid for in euros,…
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Source : skynews
