Russia says not going to supply gas to Europe "for free"

PanARMENIAN.Net - Russian President Vladimir Putin has ordered the Russian central bank, the government, and Gazprom to present proposals by March 31 for gas payments in rubles from "unfriendly countries," including all European Union states, RFE/RL reports.

Russia is working out methods for accepting payments for its natural-gas exports in rubles and it will make decisions in due course should European countries refuse to pay in the Russian currency, the Kremlin said on March 28.

"We are not going to supply gas for free, this is clear," Kremlin spokesman Dmitry Peskov told a conference call. "In our situation, it is hardly possible and appropriate to engage in charity" with European customers.

But the Group of Seven major economies has agreed to reject the demand, the German energy minister said on March 28.

Robert Habeck told reporters that "all G7 ministers agreed completely that this (would be) a one-sided and clear breach of the existing contracts."

He said officials from France, Germany, Italy, Japan, the United States, the United Kingdom, and Canada met on March 25 to coordinate their position and that EU representatives were also present.

Habeck said that "payment in ruble is not acceptable and we will urge the companies affected not to follow Putin's demand."

Putin said on March 23 that Russia will implement the changes and stop accepting payments in currencies that have been "compromised" within one week.

The announcement means that European Union members who have imposed sanctions on Russia, along with Britain, Canada, Japan, Switzerland, Ukraine, and the United States, will have to buy rubles with their euros or U.S. dollars at rates fixed by Russia's central bank to pay for the gas delivered from Russia. The move would bolster the ruble by raising demand for it.