Sign up now for FREE unlimited access to Reuters.com Register
Russia will decide on the gas payment mechanism by Thursday EU countries still disagree on how to pay in rubles G7 countries refuse to pay for Russian gas in rubles
March 28 (Reuters) – Russia said on Monday it would not supply gas to Europe for free as it worked out methods for accepting payments for its gas exports in rubles, but G7 countries rejected the demand. At a meeting of European Union leaders on Friday, no common position was reached on Russia’s demand last week that “unfriendly” countries should pay in rubles, not euros, for its natural gas, after co-operation. United States and European allies in a row. sanctions against Russia. read more Concerns about security of supply intensified after demand, with companies and EU states trying to understand the consequences. Sign up now for FREE unlimited access to Reuters.com Register Russia’s central bank, the government and Gazprom (GAZP.MM), which accounts for 40 percent of Europe’s gas imports, have until May 31 to submit their proposals for ruble payments to President Vladimir Putin. “We are not going to supply gas for free, that’s clear,” Kremlin spokesman Dmitry Peshkov told a news conference. “In our case, it is almost impossible and appropriate to engage in charity (with European clients).” Russia will make decisions in due course if European countries refuse to pay in Russian currency, he added. Meanwhile, energy ministers from the Group of Seven industrialized nations have rejected the ruble payment demands, German Economy and Climate Protection Minister Robert Habeck said after talks with his counterparts. read more “All G7 ministers have agreed that this is a unilateral and clear breach of existing conventions,” he told reporters after a sham meeting with G7 energy ministers. The ministers “stressed once again that the contracts that have been concluded are valid and the companies must and must respect them … the payment in rubles is unacceptable and we call on the companies concerned not to comply with Putin’s request,” he said. . ENERGY SECURITY Wholesale gas prices in the Netherlands and Britain rose as much as 20% on Monday amid concerns over Russian gas supplies. The EU aims to reduce its dependence on Russian gas by two-thirds this year and end Russian imports of fossil fuels by 2027. Russia’s gas exports to the EU were around 155 billion cubic meters (bcm) last year. On Friday, the United States said it would work to supply 15 bcm of liquefied natural gas (LNG) to the European Union this year. read more U.S. LNG plants are producing at full capacity, and analysts say most of the extra U.S. gas shipped to Europe should come from exports that would have gone elsewhere. Russian lawmaker Ivan Abramov has said that the G7 refusal to pay for Russian gas in rubles would lead to an unequivocal cut in supplies, according to the RIA news agency. Abramov participates in the economic policy committee of the Federal Council, the upper house of the Russian parliament. German Habeck called Russia an “unreliable energy supplier.” Asked what would happen if Russia cut off gas supplies, he added: “We are prepared for all scenarios, not just yesterday.” However, the EU will find it difficult to replace all Russian gas exports in the short term, experts said. read more Deliveries of Russian gas to Europe on three main pipeline routes remained stable on Monday, with the Yamal-Europe pipeline continuing to flow east from Germany to Poland, according to the operator. read more Russia’s Gazprom (GAZP.MM) has said it continues to supply gas to Europe via Ukraine, in line with demands from European consumers. Sign up now for FREE unlimited access to Reuters.com Register Report by Reuters. written by Nina Chestney. Edited by Robert Birsel and David Evans Our role models: The Thomson Reuters Trust Principles.
