Russian Deputy Prime Minister Alexander Novak wrote in an article in Russia’s Energy Policy magazine two days ago that “several buyers have already agreed with the transfer of gas payments into rubles, we are waiting for decisions from other importers,” TASS reported on April 15. He didn’t provide further details, but stressed that Russia had been driven to this policy in order to secure payments, given the international sanctions.
As for the EU’s stated plan to replace Russian gas, Novak wrote: “All these measures, according to the European Commission, will reduce the demand for Russian gas by two-thirds (67%) by the end of this year. They also plan to achieve energy independence by increasing the share of renewable energy sources. However, in March they noted the decline in wind generation,” Novak stressed. “But there are a number of important nuances. The lack of the necessary infrastructure for receiving LNG will not allow increasing supplies quickly.” Novak has estimated that it would take the EU 5-10 years to completely replace Russian oil and gas, and further stating that an embargo would inevitably result in record prices.
