Sign up now for FREE unlimited access to Reuters.com Register March 31 (Reuters) – Russian President Vladimir Putin said on Thursday he had signed a decree requiring foreign buyers to pay in rubles for Russian gas from April 1 and that contracts would be suspended if those payments were not made. “In order to buy Russian gas, they have to open accounts in rubles in Russian banks. From these accounts will be made the payments for the gas that will be delivered from tomorrow,” Putin said in a televised statement. “If such payments are not made, we will consider it a weakness on the part of the buyers, with all the ensuing consequences. No one is selling us anything for free and we are not going to do any charity – that is, the existing contracts will be terminated.” Sign up now for FREE unlimited access to Reuters.com Register Russia supplies about a third of Europe’s gas, so energy is the most powerful lever at Putin’s disposal as he tries to counter Western sweeping sanctions for invading Ukraine. His decision to impose ruble payments strengthened the Russian currency, which fell to historic lows after the February 24 invasion but has since recovered. Western companies and governments have dismissed the move as a breach of existing contracts set in euros or dollars. The French economy minister said France and Germany were preparing for a possible scenario in which Russian gas flows could be stopped – something that would plunge Europe into a full-blown energy crisis. An order signed by Putin set out a mechanism for buyers to transfer foreign currency to a special account in a Russian bank, which would then send rubles back to the foreign buyer to pay for gas. He said the change was intended to strengthen Russia’s sovereignty and that it would abide by its obligations under all treaties. Sign up now for FREE unlimited access to Reuters.com Register Report by Reuters. screenplay by Mark Trevelyan, edited by Guy Faulconbridge, Gareth Jones, Alexandra Hudson Our role models: The Thomson Reuters Trust Principles.
