In the dispute over the Russian requirement to pay for gas in rubles, the fronts harden. The world’s seven most important industrialized countries (G7) unanimously rejected a ruble deal at a special virtual conference of energy ministers on Monday and spoke of a breach of contract. Companies are asked not to comply, said German Economy Minister Robert Habeck (Greens).
Currently, Germany presides over the group of states, which includes Germany, France, Italy, Japan, Canada, the USA and Great Britain. The EU also participated in the round, Habeck said.
G7 ministers agreed that the ruble payment requirement was “a clear and unilateral violation of existing agreements”, Habeck said. The contracts concluded are valid, the affected companies must be faithful to the contract. “So that means payment in rubles is not acceptable.” German Chancellor Olaf Scholz emphasized: “We have a situation where contracts must be fulfilled.”
Russia, for its part, made it clear: “We are not going to distribute gas, of course,” said Presidential Office spokesman Dmitry Peskov. “In our situation, it is hardly possible and not appropriate to act as a benefactor.” President Vladimir Putin has instructed the state-owned Gazprom group to switch payment methods to rubles by Thursday. Last week, he announced that gas deliveries to “hostile states” would be billed in rubles only. This would support the troubled Russian currency as importing countries would have to purchase rubles.
euros, dollars or pounds
Currently, contracts are almost exclusively denominated in euros, dollars or pounds sterling. Following Putin’s request, Habeck said he was seeking a coordinated EU position on the matter. However, no explanation was given at last week’s summit. Germany is even more dependent than other European countries on deliveries from Russia, which has covered more than half of its needs in recent years. So far it is unclear what Putin intends with the demand. The Russian currency, which has been under severe pressure, initially rebounded after Putin’s announcement. Above all, however, companies would likely have to exchange rubles with banks, which could lead to sanctions against the institutes being circumvented.
Habeck said Putin’s attempt to divide the international community was therefore obvious. “We will not let ourselves be divided, the response of the G7 countries is clear. The treaties will be respected.” Putin’s actions show that his back is against the wall. “Otherwise, he wouldn’t have made such a demand.” When asked about a possible Russian delivery boycott, he added: “We are prepared for all scenarios.”
However, Habeck only admitted on Friday that Germany could be independent from Russian coal and oil by the end of the year. In the case of gas, however, this will take more than two years. In the context of the ruble dispute, the German energy association BDEW therefore called for the early warning level to be declared in line with the gas emergency plan and was also supported by green energy specialist Ingrid Nestlé. The Ministry of Economy had recently rejected this. “Of course we have to continue to monitor the situation closely,” a spokeswoman said on Monday. “The federal government is prepared for all scenarios and is always ready to take the necessary measures, if necessary.”
Three levels of warning
The emergency plan contains three levels of alert, which can also be triggered almost simultaneously. At the highest level, industrial companies are closed to ensure supplies to hospitals and homes, for example.
The head of the German industrial union IGBCE, Michael Vassiliadis, warned of such a scenario in Deutschlandfunk. This would not only put hundreds of thousands of jobs at risk. As a result, important components will also be missing with which, for example, the energy transition and independence from fossil fuels should be promoted. (dpa)