The European Commission released an analysis of Russian President Vladimir Putin’s decree mandating ruble payments for natural gas and warned EU member states that enforcing Moscow’s terms would breach the sanctions adopted after Russia’s military operation in Ukraine. The assessment appeared in a Bloomberg report.
“Putin’s decree alters the normal workflow and creates a new legal framework,” a senior EU official noted. “This mechanism redirects control to the Russian state regarding when a gas purchase is deemed complete and when the buyer’s obligations end.”
The EC argues that paying in rubles would give Moscow leverage to steer outcomes in its own interests, according to the commission’s assessment.
On March 31, Putin signed a decree to move payments to rubles with partners not deemed adversaries. The document requires gas buyers to open ruble and foreign currency accounts at Gazprombank to settle purchases from April 1. Payment would occur by transferring euros or dollars into the foreign currency account. The bank would then convert the funds in Moscow, deposit the rubles into the buyer’s ruble account, and treat the gas as paid once the proceeds from the currency exchange are credited to the supplier’s ruble account held in the same bank.
EU leaders have consistently opposed ruble-based payments for Russian gas. European Commission President Ursula von der Leyen condemned Putin’s move as an attempt to skirt sanctions and warned about risks for European firms. The Kremlin countered that Russia does not plan to participate in any form of charity and would halt gas deliveries if payments are not made as demanded.
Who is prepared to pay in rubles?
There is no EU-wide consensus yet on whether to adopt the new payment scheme or to continue the existing arrangements. While many member states reject changing the currency of payment, a subset of countries is willing to comply with Moscow’s demands. In the end, the choice on how to pay will rest with the companies purchasing Russian gas.
Among EU members, Hungary has shown open willingness to consider ruble payments. Foreign Minister Peter Szijjarto argued that a revised reconciliation procedure would not breach EU sanctions, even as Hungary remains opposed to broader embargoes on Russian oil and gas due to their economic importance.
Prime Minister Viktor Orbán highlighted that roughly 85 percent of Hungary’s gas consumption comes from Russia, with a majority of Hungarian households depending on gas for heating and energy, much of which is sourced from Russia by oil products as well.
Slovakia, which relies on Russian gas for a substantial portion of its needs, indicated that Moscow should comply with the ruble-payment requirement. Deputy Prime Minister Richard Sulík, however, criticized the notion of ruble payments as at odds with existing agreements.
By April 2, Lithuania announced it had fully severed Russian natural gas supplies, while Latvia warned that curbing imports from Moscow could trigger an energy crisis in the region.
On April 12, Russian Energy Minister Nikolai Shulginov told Izvestia that some “forward-looking” countries were studying ruble payments, noting that this approach would not raise costs for buyers. He also observed that other global players could not fully replace Russian gas in volume or in terms of infrastructure access. Shulginov added that Russia was engaging with various companies and nations about the possibility of ruble-based payments.
Who could supply energy resources in place of Russia?
Colombia’s president, Ivan Duque, said the country stands ready to substitute Russian energy supplies for the EU and could play a central role in meeting Western energy needs. He outlined three growth areas: traditional oil and gas, renewable energy such as clean hydrogen, and coal. Duque asserted that Colombia could boost coal production immediately and possesses substantial resources that are currently underutilized. After discussions with German Chancellor Olaf Scholz, he indicated that Colombia would increase coal shipments to Germany.
As part of the fifth sanction package, the European Union agreed to a full embargo on Russian coal, with continued negotiations on broader gas and oil restrictions. EU foreign policy chief Josep Borrell noted ongoing talks about extending the embargo to gas and oil.
Despite sanctions, Bloomberg reported that Russia could post a record oil and gas revenue, potentially reaching roughly 321 billion dollars in 2022 if importers maintain steep embargoes. That figure would mark about a one-third rise from the previous year, underscoring the stakes for energy security in North America and Europe. The market dynamics around Russian energy continue to drive policy debates, supply contracts, and strategic energy diversification efforts across the region. (Bloomberg)