Russia will stop supplying gas to countries it considers “unfriendly”
unless they pay in roubles, according to a presidential decree effective
immediately.

Buyers in 48 countries, including the EU, will be required to open a bank
account both in foreign currency and in roubles at Gazprombank in Russia,
according to the decree published on Thursday. The targets are countries
that have established sanctions against Russia’s economy, governing and
business elite for its invasion of Ukraine.

Vladimir Putin on Thursday said Russia was establishing “a clear and
transparent scheme” for these foreign customers.

“If such payments are not made, we will consider this a default on the
part of the buyers — with all the ensuing consequences,” he added during a
speech at the Kremlin.

https://www.ft.com/content/d8ee2429-7caf-4e1f-9c85-dd1f825d36e3

The decision and the threat of supply disruptions, largely mooted by
Russia’s president in the past week, have triggered alarm among European
countries that rely heavily on Russian gas. Germany on Wednesday said it
was preparing for energy rationing.

Putin gave the central bank, the customs authorities and the government 10
days to implement the new system. Because most April deliveries-related
payments are not expected until early or mid-May, the decree will
effectively be tested next month.

The reason for switching the payments to roubles was the weaponisation of
the western financial system, Putin said.

“When companies from these countries refuse to fulfil contracts with
Russian banks, enterprises, individuals, when assets in dollars and euros
are frozen, it makes no sense to use the currencies of these countries,”
he added.

“The transfer of payments for Russian gas supplies to Russian roubles is
an important step towards strengthening our financial and economic
sovereignty.”

Russia would strive to use its currency as payment for other exports,
Putin added.

“We will continue to consistently and systematically move in this
direction as part of a long-term plan, to increase the share of foreign
trade settlements in the national currency and the currencies of those
countries that are reliable partners.”