Russia Says Clear Rules for Gas Payment in Rubles Ready by Thursday

Russia said it would work out practical arrangements by Thursday for foreign companies to pay for its gas in rubles, saying they needed to understand that Western “economic warfare” against Moscow had created a new set of market conditions.

“No one will supply gas for free, it is simply impossible, and you can pay for it only in rubles,” Kremlin spokesperson Dmitry Peskov told reporters on Tuesday.

He said that in line with a March 31 deadline set by President Vladimir Putin, “all modalities are being developed so that this system is simple, understandable and feasible for respected European and international buyers.”

Putin’s order last week to charge “unfriendly” countries in rubles for Russian gas has boosted the currency after it fell to all-time lows when the West imposed sweeping sanctions against Russia over its invasion of Ukraine, which also sent European gas prices higher.

The move drew strong criticism from European countries, which pay for Russian gas mostly in euros and say Russia is not entitled to redraw contracts. Russia has so far met its contractual obligations for gas supplies to Europe. 

Separately, Valentina Matviyenko, the Speaker of the upper house of parliament, said Russia was ready if Europe refused to buy Russian energy supplies.

If that happened, it could redirect supplies to Asian markets among others, TASS news agency quoted her as saying.