Russia’s Vladimir Putin has signed a decree demanding that “unfriendly” countries that rely on Russian gas pay in rubles—or be cut off completely starting Friday.
“In order to purchase Russian natural gas, they must open ruble accounts in Russian banks. It is from these accounts that payments will be made for gas delivered starting from tomorrow,” he said Thursday.
If payments are not made in rubles, he said, “we will consider this a default on the part of buyers, with all the ensuing consequences. Nobody sells us anything for free, and we are not going to do charity either—that is, existing contracts will be stopped.”
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The decree signed by Putin says buyers must open accounts in state-controlled Gazprombank in order to exchange their foreign currency for rubles. The bank is currently under U.K. sanctions.
The list of countries the Kremlin deemed “unfriendly” over Ukraine-related sanctions includes the U.S., United Kingdom, Canada, and countries of the European Union, among others. Europe relies on Russia for almost 40 percent of its gas.
Paris reacted swiftly to the Russian leader’s demand, refusing to pay for gas supplies in a currency that was never stipulated in the contracts.
“We do not agree to pay for gas in a different currency than what was indicated in the finalized contracts,” said Bruno Le Maire, the French economy minister. Speaking at a press conference, he said France was working with Germany on contingency plans in case the gas supply is cut off.
