Putin Signs Decree On Switching Gas Payments To Rubles For Unfriendly Countries

Russian President Vladimir Putin signed a decree on the procedure for the fulfillment of obligations to Russian natural gas suppliers by foreign buyers, which stipulates that all contracts for pipeline gas deliveries with companies registered in unfriendly countries must be settled in rubles

MOSCOW (UrduPoint News / Sputnik - 31st March, 2022) Russian President Vladimir Putin signed a decree on the procedure for the fulfillment of obligations to Russian natural gas suppliers by foreign buyers, which stipulates that all contracts for pipeline gas deliveries with companies registered in unfriendly countries must be settled in rubles.

The decree applies only to Gazprom's pipeline deliveries, and Russian government commission on foreign investment will be able to issue permits for non-ruble gas payments.

New rules for the sale of Russian gas to "unfriendly countries" will come into effect on April 1, Putin said.

"If such payments (in rubles) are not made, we will consider this a default on the part of buyers. With all the ensuing consequences," he said.

Existing contracts for the purchase of Russian gas will be stopped if they refuse to pay in rubles, Putin said.

"No one is selling us anything for free. And we are not going to do charity either. That is, the existing contracts will be stopped," he said.

Russia is a responsible supplier and will continue to supply gas in volumes and at prices stipulated by existing contracts, Putin said, noting that these prices are several times lower than current spot prices.

Having frozen Russia's Currency accounts, the West actually received part of the Russian gas for free, Russian President Vladimir Putin said at a meeting with government members on the development of the aviation industry.

"In fact, what is happening, what has already happened: we supplied European consumers with our resources, in this case, gas, they received it, paid us in euros, which they themselves then froze. In this regard, there is every reason to believe that we supplied part of the gas supplied to Europe virtually free of charge," Putin said.

He added that "this, of course, cannot continue.

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"Moreover, in the case of further gas supplies and their payment in the traditional scheme, new financial receipts in Euros or Dollars may also be blocked," Putin said.

"Such a development of the situation is quite expected, especially since some politicians in the West are talking about it, they are talking publicly. Moreover, it is in this vein that the heads of EU governments speak," the president said.

The transition to settlements in rubles with Western buyers of Russian gas will strengthen the country's financial and economic stability, Putin said.

"The risks of the current state of affairs are, of course, unacceptable for us. And if you look at the issue as a whole, then the transfer of payments for Russian gas supplies to Russian rubles is an important step toward strengthening our financial and economic sovereignty," Putin said.

"We will continue to systematically move in this direction within the framework of a long-term plan," the president concluded.

Russia will expand cooperation in rubles and the national currency of countries � reliable partners, Putin said.

The United States is trying to switch Europe to expensive American LNG, thereby undermining the competitiveness of European companies, and Europe is threatened with large-scale deindustrialization and job losses due to US actions, Putin said.

"For Europe, this (US pressure to abandon Russian gas) means large-scale deindustrialization and the loss of workers. Against the backdrop of rising food prices, gasoline, electricity, housing and communal services, and a radical decline in the standard of living of citizens. This is the price the ruling Western elites offer to pay people for their ambitions and short-sighted actions, both in politics and in the economy," Putin said.