⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Russia won't demand immediate switch to rouble gas payments, Kremlin says

Published 30/03/2022, 11:22
© Reuters. FILE PHOTO: A model of the natural gas pipeline is placed on Russian Rouble banknotes in this illustration taken, March 23, 2022. REUTERS/Dado Ruvic

(Reuters) -Russia will not immediately demand that buyers pay for its gas exports in roubles, the Kremlin said on Wednesday, promising a gradual shift and saying Russia should work on an idea to widen the list of its exports requiring rouble payment.

President Vladimir Putin issued an order last week for Russian gas, which accounts for 40% of European needs, to paid for in roubles instead of dollars or euros.

Earlier on Wednesday, Russia's top lawmaker Vyacheslav Volodin said the European Union would have to pay in roubles if it wanted Russian gas and said oil, grain, metals, fertiliser, coal and timber exports could be priced the same way.

The government, the central bank and Gazprom (MCX:GAZP) are due to present proposals for the switch by Thursday.

Asked whether the payments should be in roubles starting from Thursday, Kremlin spokesman Dmitry Peskov said: "Absolutely no."

"As we discussed before, payments and delivery is a time consuming process ... This does not mean that a tomorrow's delivery should be paid (in roubles). From a technological point of view, this is a more prolonged process," he said.

Putin's order to charge "unfriendly" countries in roubles for Russian gas boosted the Russian currency after it plunged to all-time lows when West imposed sweeping sanctions on Moscow for its invasion of Ukraine. European gas prices also rocketed up.

The Russian demand has been rejected by European countries, which pay for Russian gas mostly in euros and say Russia is not entitled to redraw contracts, and by the G7 group of nations.

© Reuters. FILE PHOTO: A model of the natural gas pipeline is placed on Russian Rouble banknotes in this illustration taken, March 23, 2022. REUTERS/Dado Ruvic

Commenting on the Russian rouble plan, Anatoly Aksakov, head of the financial committee in Russia's lower house of parliament, said this week: "I believe we don't have to change the law, it's all stipulated there.""

"The foreign currency will be exchanged at a market rate, which will be set at the Moscow Exchange," he said. "They can buy the roubles wherever."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.