Vladimir Putin told clients paying for natural gas to pay in rubles or get no supplies soon. The Kremlin raised the demand after the sanctions on Russia; he is fighting back with his ways to counter them. Many bloc countries are dependent on Russia, which is driving members apart because not everyone wants to risk energy security.
Russia Wants To be Paid in Ruble
Putin has been urging countries who buy Russian gas to pay in rubles in the community to enable the Russian economy to recover following the imposition of harsh sanctions against it, reported the Express UK.
Following a phone chat with European leaders, He told allies that if the countries do not change their stance by April 1, all contracts will be annulled. He underlined that if hostile countries do not pay in rubles, it will mean a default on existing gas contracts, resulting in the cessation of existing contracts.
One more condition the Russian leader imposes is that accounts should be opened in Russian banks, especially for natural gas. If those hostile bloc countries and the US don't do it by April 1, which is April Fool's Day, they face an energy shortage, noted the BBC.
These accounts will be the basis of a continuation of gas deliveries by the date indicated. No payment for the current contract will mean the buyers bails out of the contract, and what happens next is severe.
Russian President Vladimir added that nothing comes free and will not give out free gas like a charity; pay up and get the supplies but don't do it, then it's the client's problem.
EU Needs Russian Gas
Energy is the most potent leverage at Moscow's disposal to retaliate against extensive Western sanctions for the incursion of Ukraine, while Russia supplies approximately a third of Europe's natural gas.
The sanctions did bite, and then pay via ruble scheme should make the Russian currency more resilient after the February 24 special operation to assist Donbas and Lugansk. The ruble has gained a bit against penalties heaved on the Russian economy despite the odds. Those western firms and governments have called it a breach of contract. Paris and Berlin are looking into if they can survive without energy from Russia.
European governments keen on making Putin pay dearly are in a worse situation with an energy crisis that will hit everyone hard. Under the new regulation, foreign buyers are now required to transfer foreign currency to a particular special account, known as the "K" account. The gas buyer is expected to advise Gazprombank to buy rubles on his behalf to transfer rubles to this other special "K" account, cited the Mirror UK.
Once the transfer is done for funds in Russian money for the account required, that will be paid to the Russian gas firm. The client could have the special account for energy purchase be made without the buyer present as indicated.
Washington just announced more sanctions for new Russian individuals and companies. The US is going all out on sanctions against Moscow.
These penalties are only agreed on by Brussels, the UK, and several NATO allies, but China and India have ignored these sanctions. Vladimir Putin has outlined what needs to be done to get a special 'K' account for natural gas.