One week ago, Russian President Vladimir Putin announced that “hostile states” (those implementing sanctions against Russia) would have to pay in rubles for the natural gas that they import from Russia. The deadline for that policy arrives tomorrow, March 31.
In response, both the G7 and the EU have officially announced that they reject the payments switch – setting up a collision with Russia on the matter. Germany’s Chancellor Olaf Scholz claimed in a speech to the G7 on March 28 that being forced to pay in rubles would constitute a “breach of contract.” Other EU countries claim they can’t figure out how to obtain rubles. Stanislav Mitrakhovich, a leading expert at the Financial University and the National Energy Security Fund, yesterday explained to Nezavisimaya Gazeta that in reality “finding rubles” is very easy. “It is enough to come to the Moscow stock exchange or simply open an account in a Russian bank and make a conversion.”
But this, of course, would constitute a breach in the sanctions regime being applied against Russia.
