Russia is ‘changing the payment mechanism’ for certain exports, starting with natural gas tomorrow

This afternoon.

Via Russian state-owned RT:

Countries globally may soon have to create ruble reserves within their domestic economies if they wish to continue to buy Russian gas, as Moscow switches payments to its national currency, Ilya Ilyin, the head of the banking and financial markets analysis department at Promsvyazbank said on Thursday.

“In the event of a transition to gas payments in rubles, the partner countries will probably create a certain fund of ruble reserves to facilitate payments,” the expert said.

Russian President Vladimir Putin announced on Thursday that the country is changing the payment mechanism for certain exports, starting with natural gas on April 1. The measure effects countries which have imposed sanctions on Russia in connection with Ukraine and froze Moscow’s foreign reserves.

The ‘unfriendly’ states Putin referred to are the US, UK, Canada, Australia, Japan, Taiwan, South Korea, Switzerland, the 27 nations of the European Union, and a number of smaller countries….

Countries will need to create ruble reserves to buy Russian gas (RT)

Meanwhile…

…via Irish state-owned RTÉ:

Russia supplies about a third of Europe’s gas, so energy is the most powerful lever at Putin’s disposal as he tries to hit back against sweeping Western sanctions over his invasion of Ukraine.

His decision to enforce rouble payments has boosted the Russian currency, which fell to historic lows after the February 24 invasion but has since recovered.

Western companies and governments have rejected the move as a breach of existing contracts, which are set in euros or dollars.

France’s economy minister said France and Germany were preparing for a possible scenario that Russian gas flows could be halted – something that would plunge Europe into a full-blown energy crisis.

Russia will enforce rouble payments for gas from Friday – Putin (RTE)

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