The Kremlin signs an order demanding payments in rubles for gas

Vladimir Putin announced on Thursday that he had signed a decree mandating payment for Russian gas by rubles starting in April for foreign buyers who are "unfriendly."

Russian President Vladimir Putin says contracts will be terminated if payments aren't made in the country's currency. Russia exports gas and oil to several European countries, so an interruption in gas exports could lead to a severe energy crisis for those countries.

For purchasing natural gas from Russia, the must open a ruble account at a Russian bank. Putin said in televised remarks that payments for gas will be made from these accounts starting tomorrow.

Then we will consider the buyers as defaulting on their payments, with all the ensuing repercussions. We will not do charity or do anything for free, so existing contracts will also be terminated."

Immediately following the decree, Russian media reported that the new payment system requires buyers to open Russian bank accounts in rubles, which will enable them to pay for gas supplied starting on April 1.

31 March 2022