economic war in Ukraine
‘No payment, no gas’ – Russia threatens Europe after refusing ruble payments
Status: 03/29/2022 | Reading time: 3 minutes
Kremlin Spokesperson: “No Payment – No Gasoline”
After the EU refused to pay for gas supplies in rubles, Dmitry Peskov announced possible further measures from Russia. “We certainly do not intend to present ourselves as benefactors and provide free gas to Western Europe,” the Kremlin spokesman said.
You can listen to our WELT podcasts here
To display embedded content, your revocable consent is required for the transmission and processing of personal data, as providers of embedded content as third-party providers require this consent. [In diesem Zusammenhang können auch Nutzungsprofile (u.a. auf Basis von Cookie-IDs) gebildet und angereichert werden, auch außerhalb des EWR]. By setting the switch to “on”, you agree to this (which can be revoked at any time). This also includes your consent to the transfer of certain personal data to third countries, including the US, in accordance with Art. 49 (1) (a) GDPR. You can find more information about it. You can withdraw your consent at any time via the privacy and privacy switch at the bottom of the page.
Kremlin spokesman Dmitry Peskov threatened the G-7’s refusal to pay for gas supplies in rubles. Moscow does not intend to provide the gas for free as a “benefactor”. Economy Minister Robert Habeck refers to supply contracts.
The Kremlin is threatening an escalation in the dispute over Russian gas: Kremlin spokesman Dmitry Peskov announced new measures on Monday night if the EU indeed refuses to pay for gas deliveries in rubles. “No pay, no gasoline,” Peskov said in an interview with the US television network PBS, according to state news agency TASS.
Moscow wants to wait for the EU’s response and then determine next steps. “But we definitely don’t intend to present ourselves as benefactors and deliver free gas to Western Europe,” Peskov said. Last week, Putin ordered that natural gas could only be delivered to “hostile” states like Germany if payment was made in rubles.
Read too
Russian President Vladimir Putin’s confidant has accused the West of unleashing an all-out economic war against Russia. “Unfortunately, these circumstances are extremely hostile,” Peskov said of the sanctions. This has brought us to the point of “total war”.
“And we in Russia feel this war in such a way that the countries of Western Europe, the US, Canada and Australia are waging a real war on trade, on the economy, they are confiscating our property, our money and blocking our finances.” Peskov complained. “And now we must adapt to the new reality.”
G-7 countries reject gas payments in rubles
G-7 countries rejected Russian demands that gas bills be paid in rubles on Monday. This was said by Federal Economy and Climate Protection Minister Robert Habeck in Berlin after a virtual meeting with the G-7 energy ministers. 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.
G-7 ministers agreed that the ruble payment requirement was “a clear and unilateral violation of existing treaties,” Habeck said. The contracts concluded are valid, the companies affected must be faithful to the contract. “So that means payment in rubles is not acceptable.”
This is where you’ll find third-party content
To display embedded content, your revocable consent is required for the transmission and processing of personal data, as providers of embedded content as third-party providers require this consent. [In diesem Zusammenhang können auch Nutzungsprofile (u.a. auf Basis von Cookie-IDs) gebildet und angereichert werden, auch außerhalb des EWR]. By setting the switch to “on”, you agree to this (which can be revoked at any time). This also includes your consent to the transfer of certain personal data to third countries, including the US, in accordance with Art. 49 (1) (a) GDPR. You can find more information about it. You can withdraw your consent at any time via the privacy and privacy switch at the bottom of the page.
Chancellor Olaf Scholz (SPD) said after a conversation with Swedish Prime Minister Magdalena Andersson in Berlin: “Companies will pay according to their contracts.”
Robert Habeck: “We will not be divided”
“Putin’s attempt to divide us is obvious,” Habeck said. But there is great unity. When asked about preparations in the event that Russia stops supplying gas, Habeck said: “We are prepared for all scenarios.” The federal government has been working on responses to the scenarios since the turn of the year.
Putin’s demand for a payment in rubles must be interpreted in such a way that he “had his back to the wall, otherwise he would not have made that demand,” Habeck said. Payments from the West for energy supplies are not decisive for the direct financing of the Russian war against Ukraine. Putin can finance the army, supply soldiers, supply fuel for tanks or build weapons of war largely in his own country. “For that he needs rubles. He can print the rubles,” Habeck said. “As long as Russian workers accept the ruble as a means of payment, it will be able to finance the war with its own forces.”
Read too
However, exchanging rubles into foreign currencies is extremely difficult due to sanctions against the central bank, Habeck said. However, one must become independent from Russia’s gas, coal and oil in order not to strengthen the Russian government or keep it alive. Russia is “an unreliable supplier” and its campaign “has significantly contributed to a global disruption of peace and order”.
This is where you’ll find third-party content
To display embedded content, your revocable consent is required for the transmission and processing of personal data, as providers of embedded content as third-party providers require this consent. [In diesem Zusammenhang können auch Nutzungsprofile (u.a. auf Basis von Cookie-IDs) gebildet und angereichert werden, auch außerhalb des EWR]. By setting the switch to “on”, you agree to this (which can be revoked at any time). This also includes your consent to the transfer of certain personal data to third countries, including the US, in accordance with Art. 49 (1) (a) GDPR. You can find more information about it. You can withdraw your consent at any time via the privacy and privacy switch at the bottom of the page.