After a week of insisting that big Western importers must pay for Moscow’s gas in roubles instead of euros, Vladimir Putin unveiled a scheme that apparently lets them off the hook. His April fool may not have been entirely for nothing, writes gfhay:
Russian President Vladimir Putin is demanding that foreign buyers pay for Russian gas in roubles from April 1 or else have their supplies cut.
In televised remarks on March 31, Putin said buyers of Russian gas"must open rouble accounts in Russian banks. It is from these accounts that payments will be made for gas delivered starting from tomorrow," or April 1. "If such payments are not made, we will consider this a default on the part of buyers, with all the ensuing consequences. Nobody sells us anything for free, and we are not going to do charity either - that is, existing contracts will be stopped," he said.
The order signed by Putin creates a mechanism for payments to be made via special foreign currency and rouble accounts at Gazprombank, with the foreign money to be converted into roubles via currency auctions on a Moscow exchange. U.S. President Joe Biden will announce the release of 1 million barrels of oil a day for the next six months from the U.S. Strategic Petroleum Reserve to try to bring down gasoline prices, the White House said on March 31.FILE PHOTO: An employee in branded jacket walks past a part of Gazprom's Power Of Siberia gas pipeline at the Atamanskaya compressor station outside the far eastern town of Svobodny, in Amur region, Russia November 29, 2019.
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