Russia says gas payments must be made via ruble accounts

Russian President Vladimir Putin on Thursday demanded foreign countries open accounts at Gazprombank to pay for Russian gas.

He said he would suspend gas supply contracts if "unfriendly" countries fail to comply with the order.

Putin said the decision comes into effect on April 1.

Putin had initially insisted that foreign countries pay for gas in rubles — a move seen as a bid to save Russia's economy, which has been hit by Western sanctions for the war in Ukraine.

Germany and other Western countries had firmly rejected the demand to pay for Russian gas in rubles, saying it was a breach of contracts that had been agreed with Russia. 

Kremlin: 'There is, in fact, no change'

According to a decree signed by Putin, foreign countries and companies must pay for Russian gas through Gazprombank accounts. 

Buyers must transfer foreign currency to a special, so called "K", account, and Gazprombank would then buy rubles on behalf of the buyers to transfer the payments in Russian currency to another special "K" account.

"De facto, for those who receive Russian gas, who pay for the deliveries, there is in fact no change. They just acquire rubles for the amount in currency which is stipulated in the gas contract," Kremlin spokesman Dmitry Peskov told reporters on Thursday.

"Russia remains committed to all its obligations under existing contracts, both in quantity and in price," he said, adding that Putin and German Chancellor Olaf Scholz had discussed the system in detail a day earlier. 

Germany said on Wednesday that Putin assured Scholz that payments could still be made in euros.

Germany says will pay in euros

German Chancellor Olaf Scholz said the payments for Russian gas is made according to the existing contracts. "That's the way it is, it will stay that way, and I made that clear yesterday in my conversation with President Putin," he said on Twitter. 

Germany's Finance Minister Christian Lindner said Berlin would now look into the technical details linked to Moscow's latest decree, reiterating that Germany would keep paying in euros.

Robert Habeck, the German economy minister, said that it is "crucial for us that the contracts are respected."

"It is important for us not to give a signal that we will be blackmailed by Putin," Habeck said.

fb/nm (Reuters, EFE, dpa)