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The gas russian goescontinue to supply Europe? Vladimir Poutine threatens Europe, Thursday March 31, and requires the immediate payment of gas in ruble. A request rejected by France and Germany.
From Friday April 1stEuropeans will have to pay for their gas in rubles, says a decree signed by Vladimir Putin. Moscow thus responds to the West, and supports the course of its currency, weakened by economic sanctions. For Europe, this is a new puzzle: 40% of its gas supply comes from Russia: 17% for France, 55% for Germany. Both countries refuse to give in to Russian demands. “There may be a situation in which tomorrow, for very specific circumstances, there would be no more Russian gas. It is up to us to prepare these scenarios“, commented Bruno Le Maire, Minister of Economy and Finance.
According to an expert, firmness in the face of Russia is essential. “Agreeing to pay in rubles is a huge defeat for the European Union. It means accepting that the contracts are more risky, because they would be indexed to the ruble, which is a much more volatile currency than the euro and the dollar.“, explains Nicolas Goldberg, expert energy at Columbus Consulting. In the short term, France should not run out of gas. If inventories are not replenished, however, some energy-consuming businesses could suffer cuts next winter.