Russia Signals Ruble Payments for Gas, Keeping Volumes and Pricing Aligned
On the afternoon of March 23, President Vladimir Putin announced a shift in Russia’s gas payment terms. The change specifically affects the currency used in settlements for pipeline gas; volumes and pricing rules will remain unchanged, and liquefied natural gas sales are not impacted. The move centers on transferring the settlement currency to the ruble for gas traded via pipelines.
Putin emphasized that Russia values its reputation as a dependable partner and supplier. He stated that the changes will solely alter payment currency, while the rest of the commercial framework stays intact.
He argued that in the current global environment it makes little sense for Russia to conduct commodity sales to the European Union and the United States in dollars and euros, currencies he described as already reconciled. The president tasked the government with directing Gazprom to adjust existing contracts. He also called for the Bank of Russia, in cooperation with the government, to determine within a week how foreign buyers can acquire rubles in the domestic market to complete payments.
German perspective
Industry leader Timm Köhler remarked that the German gas sector was taken by surprise by Putin’s remark. He noted that it remains unclear what precise effects this could have on gas trade and said the implications are difficult to forecast at this stage.
Susanne Ungrad, a spokesperson for Germany’s Ministry of Economic Affairs and Climate Protection, warned that such a move might breach already signed agreements that typically involve euros. She stated that Germany would monitor the development and consult with partners, including at the EU level. Economy Minister Robert Habeck also asserted that the shift would violate existing contracts and that Germany would discuss the matter with European partners. The minister further commented that this development underscores Russia’s unreliability as a partner in energy supply.
Klaus Ernst, head of the Bundestag’s energy and climate protection committee, noted that paying in rubles is technically possible but would compel the EU to bypass its sanctions. He argued that from Russia’s viewpoint the move would be aimed at pressuring states on a sanctions list, potentially fueling debates about a broad boycott of Russian energy carriers.
Austrian response
OMV, Austria’s leading oil and gas company, stated it would continue paying for Russian gas in euros. The company cited existing contracts and said no changes had been communicated, noting they would await direct outreach before taking any action. When asked about continuing euro payments, OMV representatives indicated that there was no contractual basis to change the currency unilaterally and that current arrangements would be observed.
Japanese reaction
Finance Minister Shun’ichi Suzuki said Japanese authorities were still evaluating how Russia’s decision would be implemented. He explained that the government is coordinating with relevant ministries to understand the intent and practical steps involved and to assess broader implications for the economy and financial markets as sanctions continue to evolve. Japan intends to engage with G7 partners and the international community to address potential consequences and to respond in a timely manner.
Italian viewpoint
An economic adviser to Italian Prime Minister Francesco Javazzi suggested that paying in rubles could be a way to sidestep sanctions, while firmly stating that euros remain the preferred currency for payments under current contracts. The adviser added that no government decision had been made yet. The Italian government has not issued a formal directive on this matter.
Serbia’s stance
Serbian President Aleksandar Vučić described the shift to ruble payments as raising important questions. He suggested that opposing petrodollars in a geopolitical game, possibly alongside the yuan, could complicate existing agreements. Vučić noted that gas prices rose after the announcement and mentioned Serbia’s proximity to Bulgaria, which handles some gas transit through the region. Serbia is not on Russia’s list of hostile states, but nearby neighbours are closely watching how routes and currencies might affect supply and cost. A Kremlin spokesperson commented that Serbia would be prioritized in discussions if it faced difficulties, while Bulgaria faced a more direct linkage to Russia in transit terms, potentially complicating any ruble-based payments. The official stance highlighted that while Bulgaria bears a different risk profile, Serbia’s concerns would be treated with high priority.
Bulgarian response
Bulgarian authorities indicated there were no immediate payment risks under existing contracts, noting that a financial counterparty in Bulgaria could trade in rubles. A formal evaluation of a payment scenario would be conducted by the Bulgarian Energy Holding, but no immediate changes were anticipated. Source attribution: Bulgarian energy ministry
Armenia’s reaction
Armenia’s Deputy Prime Minister Mher Grigoryan stated that his government is discussing the possibility of ruble payments for natural gas with Russia. He cautioned that no promises could be made yet due to prevailing preconditions, but the issue is actively under discussion in public and official channels. Armenia is not listed as hostile, and Gazprom remains the sole supplier of gas to the country. Source attribution: Armenian government press
Moldova’s position
Deputy Prime Minister Andrei Spinu said Moldova does not foresee payment issues if rubles are used, stressing that Moldova’s contracts allow payments in multiple currencies. He noted that Moldovagaz has historically accepted dollars, euros, and rubles, and that no compelment to switch currencies exists. Moldova’s gas supplier, Moldovagaz, indicated that some deliveries have been settled in rubles, but the financial impact on the company is not expected to be adverse. Source attribution: Moldovan government brief
Poland’s take
Poland’s PGNIG executive Pavel Mayevsky stated that ruble payments for Russian gas were not a feasible option, signaling a clear stance against currency-switch proposals within current contracts. Source attribution: Polish energy ministry