Russian President Vladimir Putin signed a decree demanding payment in rubles for Russian gas supplies, which is set to begin tomorrow, April 1, as previously reported.
Putin: “In order to purchase natural gas, they must open ruble accounts in banks. It is these accounts that will be used to pay for gas supplied starting from April 1. If such payments are not made, we will consider this a default on the part of the buyers.
According to the decree, while Russia will continue to supply gas at set volumes and prices, it demands that buyers of gas open accounts in Russian banks. There, they can deposit EUROS which will the Bank will have converted to Rubles on the Foreign Exchange.
Pushing what many viewed as a bluff to the edge, Putin said that active contracts will be halted if demands are not met, and explained that the move is meant to increase settlements in national currencies.
Putin also warned that new proceedings in EUR or USD could be blocked.
Russia took this action after many Western countries imposed economic sanctions after Russian began a Special Military Operation inside Ukraine.