Putin Wants Gas Payments in Rubels from Unfriendly Countries

Russian President Vladimir Putin has instructed the Russian Central Bank to find a way to settle gas payments in rubles within a week. In addition, Russian gas giant Gazprom has been ordered to revise the supply contracts of gas customers.

The payment of gas in rubles should apply to countries considered unfriendly by the Russian government. These countries include the US, the UK, EU member states and Japan, which have imposed several sanctions on Russia in recent weeks.

This could hit Russian gas customers hard, especially the EU countries, but also Japan. Around 40% of EU gas is imported from Russia. The majority of Gazprom’s business is conducted in euros. Reuters reports that Gazprom’s gas sales are 58% in euros, 39% in dollars and 3% in sterling.

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