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Paying for Russian gas in roubles is ‘unacceptable’, says G7

29 March 2022
Import-Export
energynomics

German Economy Minister Robert Habeck says the Group of Seven has called “on the companies concerned not to comply with Putin’s demand”. Paying for Russian gas in roubles would be unacceptable, Group of Seven (G7) countries have reiterated, with German Economy Minister Robert Habeck saying this recent demand showed Russian President Vladimir Putin’s back was “against the wall”.

“All G7 [energy] ministers agreed that this is a unilateral and clear breach of the existing agreements,” said Habeck, whose country holds the presidency of the G7 most industrialized nations.

Putin announced last week that Russia would only accept payments in roubles for natural gas deliveries to “unfriendly countries”, which includes all European Union members. Economists said the move appeared designed to try to support the rouble, which has collapsed against other currencies since Russia invaded Ukraine on February 24 and Western countries responded with far-reaching sanctions against Moscow. But some analysts expressed doubt that it would work.

The G7 bloc consists of Britain, Canada, France, Germany, Italy, Japan and the United States.

The Russian move “is not in line with what was signed, and I do not see why we would apply it,” French President Emmanuel Macron said.

Asked by reporters on Monday if Russia could cut natural gas supplies to European customers if they reject the demand to pay in roubles, Kremlin spokesman Dmitry Peskov said in a conference call that “we clearly aren’t going to supply gas for free.”

In Romania, the minister of Energy Virgil Popescu explained on Friday, March 25, that Romania does not buy gas from Russia or Gazprom directly, therefore, the request does not apply.

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