Russian President Vladimir Putin announced on Wednesday that Russia will only accept payments in rubles for its oil and gas purchases. The measure is intended to apply to countries that have been included on the list of states hostile to the Russian Federation.
No more payments in euros or dollars for Russian energy commodities. If countries hostile to Russia want to continue taking its oil or gas, they will not be able to pay in any currency other than rubles.
Natural gas supply
“Russia will, of course, continue to supply natural gas at prices and volumes corresponding to the previously concluded contracts. The only change will affect the currency in which the deals will be settled,” Russian President Vladimir Putin said on Wednesday. The proposed changes should be negotiated by the Russian supplier Gazprom with its customers in about a week.
Pressure on the ruble
The measure may go some way to easing the pressure on the rouble, which has fallen about 40 percent against the euro and the dollar since the start of the Russian invasion of Ukraine. The question is how well it will work. Russian exporters are already obliged to convert at least 80 percent of their foreign currency earnings into rubles. Putin’s proposal would therefore mean that the rouble would henceforth serve not 80 but 100 per cent of export transactions.
