Vladimir Putins Gas Ultimatum

Vladimir Putin’s Gas Ultimatum Expires

On Thursday, Moscow wants to explain how the West should pay for its gas in rubles in the future. If he doesn’t, the delivery stop threatens. Europe is fighting and waiting for a bluff. But corporations are preparing for emergencies.

Vienna. “Nobody will deliver gas for free. And you can only pay for it in rubles.” With those words, Kremlin spokesman Dmitry Peskov summed up Moscow’s outlook on Tuesday on the growing conflict over payment for gas supplies to Europe. He was even clearer Monday night on US broadcaster PBS: “No pay – no gas.” This was the Kremlin’s reaction to the G7’s decision not to comply with the Kremlin’s ruble payment requirement, Die Presse reported.

the requirement

A week ago, Russian President Vladimir Putin surprised by announcing that “hostile states” (which include the entire EU) will have to pay for their gas supplies in rubles in the future. On the one hand, this should generate demand for rubles and strengthen the exchange rate of the Russian currency. On the other hand, Russia could also increase pressure to break tech sanctions. If the Russian central bank does not provide rubles for exchange, the only way for the West to get hold of them would be to deliver goods.
Thus, Europe would be forced to circumvent its own sanctions. The demand was therefore rejected by the G7 group, which also includes Germany, France and Italy.

According to German Economy Minister Robert Habeck, payment in rubles “is not acceptable”. In Austria it is still undecided. The Federal Chancellery said on request: “Existing contracts do not provide for payment in rubles, Russia would unilaterally break them.” What is needed is a European line, “don’t go alone”. The deputy prime minister of Bavaria, Hubert Aiwanger, shows in an interview with “Presse” that there are also different opinions in Germany: “Either I need the gas, so I have to pay in any currency. Or I don’t need it, so I don’t I need to spend euros and dollars on it.”