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Russia won’t immediately cut off gas supplies under new decree requiring payments in rubles, Kremlin says

Chris Liakos

Russia says it won’t start cutting gas supply to “unfriendly countries” immediately under a new decree requiring payment to be made in rubles from April 1.

“Yesterday, I received many questions about whether this means that if there is no confirmation in rubles, would it mean that gas supplies will be cut off from April 1? No, it doesn’t, and it doesn’t follow the decree,” Kremlin spokesperson Dmitry Peskov said Friday.

Peskov said that payments for deliveries made today are not due until the end of April or beginning of May.

“But once again, I repeat that for the nuances, it is better to contact Gazprom,” Peskov said.

According to the new decree published yesterday, Gazprombank would open accounts in the name of Western gas buyers, convert their euros or dollars and then deposit the rubles into another account which would then be used to pay Gazprom.

German Chancellor Olaf Scholz insisted Thursday that Berlin will make payments for Russian gas only in euros. “We have looked at the contracts on gas delivery and other deliveries. [The contracts state] that payments are to be made in euros, sometimes in US dollars, but mostly in euros. And I made clear in my conversation with the Russian President that this will remain as it is,” Scholz said in Berlin during a joint news conference with his Austrian counterpart Karl Nehammer.

 

The EU’s Economics Commissioner, Paolo Gentiloni, told CNN’s Richard Quest on Thursday that this “is an attempt to circumvent European sanctions and to blackmail the European Union.”

Responding to a question, Peskov told reporters Friday that the decision to sell gas for rubles could be reversed in the future but for now the ruble is Russia’s preferred option.

 

“Absolutely. If other conditions come up. In this case, there is nothing concrete reinforced, but in the current conditions, the ruble is a more preferable and reliable option for us,” he said.

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