Moscow: Russia has come up with an interesting trick to counter the severity of sanctions imposed by the west, as it announced on Friday that it would bill gas exports to Europe in Ruble.
The Russian economy is currently facing the gravest crisis since the breakdown of the former Soviet Union in 1991.
In response to the crippling sanctions, President Putin announced his plans to receive payment for Russian gas in the Rubles.
The Kremlin administration has already told Gazprom about the plan to accept export payments in roubles and that it had just four days left to work out how.
“There is an instruction to Gazprom from the president of the Russian Federation to accept payments in roubles.” https://t.co/1dVwElOzAR
— SweetCrude Reports (@SweetCrudeRep) March 25, 2022
Gazprom is the world’s biggest natural gas company, which supplies 40% of Europe’s gas. Its decision to demand Ruble for its gas rather than Dollars could be a huge boost to the Russian Ruble, which plummeted compared to the Dollar since the invasion of Ukraine. Putin’s speech lifted the rouble 9% against the dollar on Wednesday.
“There is an instruction to Gazprom from the president of the Russian Federation to accept payments in roubles. This information will be brought to the purchasers of Gazprom products,” Kremlin spokesperson Dmitry Peskov told reporters.
The decision has also left many buyers of the Russian gas wondering how they could get Russian Rubles, given the severity of sanctions.
Meanwhile, Dutch gas prices, the European benchmark, have spiked due to concerns over whether countries will be willing or even able to pay in roubles.
