A model of the natural gas pipeline is placed on Russian ruble banknotes in this illustration dated March 23, 2022. REUTERS/Dado Ruvic
March 30 – Russia will not immediately require buyers to pay for its gas exports in rubles, the Kremlin said on Wednesday, promising a phased switch and saying Russia should work on an idea to expand the list of its exports that require payment in rubles.
President Vladimir Putin last week ordered Russian gas, which supplies 40% of Europe’s needs, to be paid for in rubles instead of dollars or euros.
Russia’s top lawmaker Vyacheslav Volodin earlier Wednesday said the European Union would have to pay in rubles if it wanted Russian gas, and said oil, grain, metals, fertilizers, coal and timber exports could be priced the same way. Continue reading
The government, central bank and Gazprom (GAZP.MM) are expected to present proposals for the changeover by Thursday.
Asked whether payments should be made in rubles from Thursday, Kremlin spokesman Dmitry Peskov said: “Absolutely no.”
“As we have already discussed, payments and deliveries are a time-consuming process … This does not mean that tomorrow’s delivery should be paid for (in rubles). From a technological point of view, this is a long process,” he said.
Putin’s order to bill “unfriendly” countries in rubles for Russian gas gave a boost to the Russian currency after it fell to an all-time low as the West slapped sweeping sanctions on Moscow for its invasion of Ukraine. European gas prices also shot up.
The Russian demand was rejected by European countries, which pay for Russian gas mostly in euros and say Russia does not have the right to renegotiate contracts, and by the group of G7 countries.
Anatoly Aksakov, chairman of the finance committee in the Russian lower house, commented this week on the Russian ruble plan: “I don’t think we need to change the law, it’s all there.”
“Foreign currency is exchanged at a market rate set on the Moscow Stock Exchange,” he said. “You can buy rubles anywhere.” Continue reading
Reuters reporting; Editing by Edmund Blair