European nations that are not hostile toward Russia still acknowledge a dependence on Russian energy resources. Putin reminded audiences that Europe would struggle to fully end its reliance on gas from Russia at this moment.
He argued that a reasonable substitute for European gas does not yet exist. It is possible to diversify supply, but current conditions do not permit it. There is no free capacity on the market, and imports from other countries, especially the United States, would raise costs for consumers. In practical terms, this would raise living costs and reduce the European economy’s competitiveness, he suggested.
Putin warned that if Western governments proceed to push Russian suppliers out of the market, the consequences would echo across the global economy. In particular, those who initiated such a move would bear the chief burden of the resulting disruption.
He noted that European dialogue about rejecting Russian energy has already contributed to higher gas prices. He stated that repeated talk about rejecting supplies destabilizes markets and inflates prices, to the detriment of European citizens.
Looking ahead, Putin forecast that Russia’s energy exports to Western markets will tighten in the near term. The response, he said, should be a reorientation toward other regions. Exports should be diversified step by step toward rapidly growing southern and eastern markets, and the necessary infrastructure should be identified and begun soon.
He also called for a review of the long‑standing development plan for Russia’s fuel and energy complex, updating earlier decisions and refining the path forward. He recalled a detailed import substitution plan discussed at the end of 2015 within the Fuel and Energy Complex Development Commission and proposed to assess the effectiveness of those decisions, identify remaining issues, and revise the points guiding the sector’s development.
The president reminded audiences that the aim is to shift payments for Russian gas into the national currency, gradually reducing reliance on the dollar and the euro. He noted that payments from banks in some unfriendly countries have faced delays. Acknowledging this, he explained that there are failures in payments for export deliveries of Russian energy resources, and that banks in these hostile countries are delaying transfers.
In a recent policy move, the Dutch government announced a ban on local companies paying for Russian gas in rubles, arguing that such payments could undermine EU sanctions. Dutch officials stated that this approach would not be allowed. This development aligns with Europe’s broader efforts to preserve financial and economic stability as it navigates gas supply considerations.
Under Russia’s framework, foreign buyers would continue to pay for Russian gas in dollars and euros, but they would need to open foreign currency and ruble accounts with Gazprombank. Funds placed in these accounts would be protected from freezing or confiscation, and buyers would transfer money to a Moscow Exchange listed exchange account in the currency specified by their contract. Gazprombank would then receive rubles and credit them to the buyer’s ruble account. Gas prices would remain fixed as per the contract terms. The arrangement is intended to remove the risk of fund freezes when payments move through Russian banks, while ensuring continued gas deliveries. Analysts emphasize that the plan accommodates markets that still rely on Western currencies, but aims to add a secure channel for payments that supports ongoing energy flows. This interpretation reflects perspectives from energy finance experts who observe the policy’s potential to stabilize payments amid geopolitical shifts (Attribution: Energy and Finance Institute).
As this topic evolves, markets in North America will be watching closely how Europe manages its energy mix, pricing, and payment structures. The broader conversation centers on balancing energy security with strategic diversification and the resilience of global energy trade, a dynamic that remains central to policymakers and industry observers in Canada and the United States (Attribution: North American Energy Policy Brief).
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