Putin agrees to keep gas payments in euros, Germany says

Russian President Vladimir Putin told German Chancellor Olaf Scholz during a phone call that Europe can continue paying for Russian gas in euros and not rubles, the German government has announced. 

Germany can continue paying for Russian gas in euros, Putin says

Speaking on the phone on Wednesday evening, Putin reportedly assured the German chancellor that Russia would not ask European countries to pay for gas in rubles, and would instead allow them to continue paying in euros or dollars. 

Putin said that the money could be paid into GazpromBank - which is not currently subject to sanctions - and then transferred from the bank to Russia in rubles. “Scholz did not agree to this procedure in the conversation, but asked for written information to better understand the procedure,” the German government clarified in its statement. 

Both leaders agreed to have further conversations on the matter, while Putin insisted that “nothing would change for European contract partners” when the new system takes effect on April 1. 

Russian demands heightened volatility on energy market

Last week, Putin caused further uncertainty on Europe’s energy market after he said that Moscow would only accept payments for gas deliveries to “unfriendly countries” like the EU member states in rubles. He said this was because, “in violation of the norms of international law, the foreign exchange reserves of the Bank of Russia were frozen by the member states of the European Union.” 

The request was rejected by the countries of the G7, with Germany’s Economics Minister Robert Habeck describing it as a “unilateral and clear breach of the existing agreements.” Preparing for the possibility of the situation escalating to the point at which Russia cut off supply, Germany activated its emergency gas supply plan on Wednesday. 

Image: photocosmos1 / Shutterstock.com