Deputy Prime Minister Alexander Novak noted that a majority of European Russian gas buyers have shifted to settlements in rubles. He stated that Russian currency now accounts for about 90-95% of export deliveries.
Novak, speaking at the St. Petersburg International Economic Forum and quoted by Interfax, said that those who wanted to switch had done so. From the total volume, he estimated roughly 90-95% of delivery volumes are settled in rubles. He added that more precise comments would come from the Gazprom board chairman, but the current estimate reflects a substantial move toward ruble payments.
According to Novak, Hungary has the potential to become a Russian gas hub, though outcomes depend on existing contracts. Gazprom supplies materials to various countries, with deliveries carried out strictly in line with contractual terms.
how about the price
Novak argued that political actions by Western nations and gaps in energy balance planning have driven prices higher globally. He noted that Europe is projected to pay notably more for oil and gas, with an example of about 400 billion euros more in 2022 compared with 2021, due to sanctions and shifts away from Russian energy sources.
During SPIEF, Gazprom chairman Alexey Miller highlighted price shocks in energy markets. He described ultra-high volatility and inflation in commodity markets and attributed part of this instability to foreign regulators, particularly European ones. The remarks echoed concerns about regulatory influence on energy pricing.
European spot gas prices rose more than 10 percent on the preceding day. At the TTF hub in the Netherlands, gas traded around $1,155 per thousand cubic meters at 16:30 Moscow time on June 15, according to ICE data. After Gazprom announced certain operational constraints, prices continued to climb. A halt in another Siemens gas turbine engine contributed to the tension.
Earlier in the week, Gazprom reported reduced flows through the Nord Stream pipeline via Portovaya, with only three of eight pumping units active due to delays in returning repaired equipment from Siemens. Within two days, deliveries to the European Union via Nord Stream declined from 167 million cubic meters to 67 million cubic meters per day. Germany publicly criticized Gazprom for what it described as delayed statements and perceived efforts to inflate prices.
how it all started
Starting April 1, a presidential decree directed by Vladimir Putin required payment for Russian gas in rubles from buyers in hostile countries. Importers deposit euros or dollars into Gazprombank accounts, where the funds are converted into rubles and transferred to Gazprom. On June 9, the Kremlin announced the suspension of gas supplies to importers that refused ruble payments, targeting buyers from Poland, Bulgaria, Denmark, Finland, the Netherlands and Germany. Kremlin spokesperson Dmitry Peskov stated that gas sales at that moment were conducted in rubles only.
Gazprombank account openings had already been announced by several European and global energy players, including Italy’s Eni, France’s Engie, Germany’s Uniper and Verbundnetz Gas, and Austria’s OMV, among others. The shift to ruble settlements represents a major change in the framework of gas trade and contractual compliance across involved parties, with ongoing implications for pricing, supply security, and international energy diplomacy. [Interfax], [RIA Novosti], [Agency reports].