Russia will only accept rubles for payment of its gas, Berlin denounces a “breach of contract”

Vladimir Putin announced earlier today that Russia would no longer accept payments in dollars or euros in exchange for its gas deliveries to the European Union.

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Russia hardens its position on the sale of its gas. Its President Vladimir Putin announced on Wednesday March 23 that Moscow would no longer accept payments in dollars or euros in exchange for its gas deliveries to the European Union. This requirement “constitutes a breach of contract”reacted the German Minister of Economy, Robert Habeck, during a press conference in Berlin. “We will now discuss with our European partners how to meet this demand”he added.

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Vladimir Putin explained that this decision was a reaction to the freezing of Russian assets in the West because of its offensive in Ukraine. He gave a week to the Russian authorities to work out the new ruble system.

Despite the war, Russian gas continues to flow to the European Union, which refuses to impose an embargo, as in the United States and the United Kingdom. Germany is particularly dependent on Russian gas, which accounts for some 55% of its gas imports. Berlin, however, is seeking to quickly reduce its dependence by canvassing other suppliers.


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