“Open and transparent scheme”
“Today I signed a decree establishing the rules for the trade of Russian gas with supposedly unfriendly countries. We offer an open and transparent plan to counterparties from such countries. “In order to buy Russian gas, they need to open a ruble account in Russian banks,” he said.
According to him, these accounts will be used to pay for the gas delivered from April 1st.
“If such payments are not made, we will consider this a default on behalf of the buyers, with all the consequences. Nobody is selling us anything for free. And we won’t either. In other words, the existing contracts will be stopped,” he said.
He noted that “in a situation where the financial system of Western countries is used as a weapon, companies from these countries refuse to fulfill contracts with Russian banks, businesses, individuals, assets in dollars and euros are frozen, it makes no sense to use the currencies of these countries” .
According to the president, the transition to ruble-denominated agreements with Western buyers of Russian gas will strengthen the country’s financial and economic stability.
“The risks of the current situation are of course unacceptable to us. And if you look at the issue as a whole, then the transfer of payments for Russian gas supplies to the Russian ruble is an important step towards strengthening our financial and economic sovereignty,” he said.
He emphasized that Russia is a responsible supplier and will continue to supply gas at the volumes and prices stipulated in the current contracts. The Chairman noted that these prices are several times lower than current prices. nail in the spot market.
“It can’t go on like this”
Putin is confident that the US is trying to turn Europe into expensive American LNG, thereby undermining the competitiveness of European companies.
“Global markets are falling, and the value of shares in companies in the US military-industrial complex is only increasing. Capital flows into the United States and deprives other parts of the world of development resources. Attempts to transfer from the same series and, of course, to expensive American LNG. As a result, Europeans are not only being forced to leave, but are actually undermining the competitiveness of European companies themselves, removing them from the global market.”
He also believes that the West is getting some of the Russian gas for free by freezing Russia’s foreign currency accounts.
“Actually, what’s going on is what happened: we provided our European consumers with our resources, in this case gas, they bought it, paid us in euros, then froze themselves. In this regard, there is every reason to believe that we are indeed providing some of the gas supplied to Europe for free,” he said.
“Naturally, this cannot continue,” he added, because “in case of further gas supplies and their payment in the traditional plan, new financial income in euros or dollars may also be blocked.”
“Such a development of the situation is quite expected, especially since some politicians in the West are talking about it publicly. Moreover, the heads of government of EU countries are also speaking in this direction.”
presidential decree
According to the text of Putin’s new decree, published On the Kremlin website, the Gazprombank joint-stock company will open special ruble accounts for foreign buyers of gas from hostile countries. It will also sell foreign currency to be converted into rubles for payment of natural gas at auctions at MICEX-RTS.
The Board of the Central Bank of the Russian Federation will be empowered to establish a regime for special ruble and foreign currency accounts, as well as to determine the procedure for the sale of foreign currency.
The Central Bank of the Russian Federation will determine the procedure for opening special foreign currency accounts for buyers of foreign gas within 10 days.
The Government Commission on the Control of Foreign Investments in the Russian Federation had the power to authorize foreign buyers to fulfill their obligations to Russian suppliers to pay for the supply of natural gas without complying with the procedure established by the decree.
German refusal
German Chancellor Olaf Scholz, in a statement after signing Putin’s decree, said that gas from Russia was paid in euros and dollars and will remain so.
“The answer is very short. We looked at the contracts for the supply of gas and other deliveries. He says that the payment is made in euros. Sometimes in dollars, but usually in euros. In my conversation with the President of Russia, I made it clear that this will remain so,” he said.
According to him, companies still “want to pay in euros”. The German Chancellor added that while Russia’s dependence on energy resources, especially oil and coal, could be eliminated as early as this year, it will take longer to give up on gas.
France also stated that it would not accept Moscow’s request to pay for Russian gas supplies in rubles. DEA Novosti.
“I want to remember the G7 statement. We will not accept requests to pay for gas in other currencies. This is not stipulated in the contracts. “The treaties are contracts and they must be strictly adhered to,” said Bruno Le Maire, French Minister of Economy and Finance.
According to London, after Putin’s decision to pay for Russian gas in rubles, gas prices in Europe accelerated their growth rate and jumped to almost $1,450 per thousand cubic meters. exchange ICE.