Putin demands payments for gas in rubles: Country leaders are terrified, talk about breach of contract – New Time

Leaders of some European Union countries have rejected Russia’s plans to demand payments for gas supplies in rubles. As they said, such a move would be a breach of contract. TASR reports on the basis of a report by Reuters. Russian President Vladimir Putin announced on Wednesday (March 23) that Russia would demand that “enemy” countries pay for the supply of natural gas in Russian currency. This means all EU countries that Russia included in the list of countries it considers hostile at the beginning of March. The list includes 48 countries, in addition to the EU, the USA, Canada, Switzerland and Japan. Putin’s statement has led to rising gas prices in Europe, while raising fears of a possible halt in supplies of raw materials to the EU, which is still heavily dependent on supplies from Russia. This accounts for about 40% of total gas consumption in the European Union. The representatives of Germany and Italy were the first to react, according to which payment in rubles would mean a breach of contracts. German Chancellor Olaf Scholz said the currency in which German customers of Russian fossil fuels had to pay Moscow was set directly in their contracts. “The currency in which the deliveries are made is part of the supply contracts and in most cases the contracts provide for payments in euros or dollars,” Scholz said after arriving in Brussels for the European Council summit. The Italian Prime Minister Mario Draghi expressed a similar opinion. “We need to know that it would basically be a breach of contract,” he said. The head of the European Commission Ursula in der Leyen added that Russia is trying to circumvent the sanctions of the European Union by this step, which Brussels will not allow. “It will no longer be possible to blackmail us through energy,” she said. The Russian president’s statement on plans to pay for gas in rubles was immediately reflected in the Russian exchange rate. Ruble strengthened against the dollar by 9% on Wednesday.