Putin states Russian gas should be spent for in rubles from Friday

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Putin says Russian gas must be paid for in rubles from Friday

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Russian President Vladimir Putin, imagined here in October 2021, has actually chosen to implement ruble payments for Russian gas, which has actually increased the nation’s currency.

Mikhail Svetlov|Getty Images News|Getty Images

Russian President Vladimir Putin stated on Thursday that he had actually signed a decree stating foreign purchasers need to pay in rubles for Russian gas from April 1, and agreements would be stopped if these payments were not made.

“In order to purchase Russian natural gas, they must open ruble accounts in Russian banks. It is from these accounts that payments will be made for gas delivered starting from tomorrow,” Putin stated in telecasted remarks.

“If such payments are not made, we will consider this a default on the part of buyers, with all the ensuing consequences. Nobody sells us anything for free, and we are not going to do charity either — that is, existing contracts will be stopped.”

Putin’s choice to implement ruble payments for gas has actually increased the Russian currency, which was up to historical lows when the West used sweeping sanctions after he sent his army into Ukraine onFeb 24.

But Western business and federal governments have actually declined the relocation as a breach of existing agreements, which are embeded in euros or dollars.

Putin stated the switch was indicated to enhance Russia’s sovereignty, and it would adhere to its responsibilities on all agreements. Russia provides about a 3rd of Europe’s gas.

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