Russian President Vladimir Putin’s decree to pay for gas supplies to unfriendly countries in rubles violates European Union (EU) sanctions. The corresponding position was taken by the European Commission (EC), Bloomberg reported on April 13, citing sources.
“Putin’s decree significantly changes the procedure and creates a new legal situation. This mechanism will violate the restrictive measures that the European Union has taken against the Russian government, the Central Bank, ”the agency writes.
According to experts, Russia will control transactions and be able to regulate the exchange rate in its favor if countries agree to the requirement to pay for gas supplies in rubles.
According to the agency, the EC presented member countries with a preliminary legal analysis of the decree.
Earlier that day, Alexei Pushkov, a member of the Federation Council, said that the West is also aware of the consequences of the possible emergence of a “gas ruble” against the backdrop of anti-Russian sanctions. In his opinion, Western countries want to prevent the ruble from breaking out into European and then global financial fields.
So he commented on the article by Xu Polin, a researcher at the Chinese Academy of Social Sciences, who predicted a turning point in the international monetary system due to the emergence of the “gas ruble”.
On April 12, Russian Energy Minister Nikolai Shulginov told Izvestia that constructively minded countries were exploring the possibility of paying in rubles. He also stressed that this form of payment does not increase the cost of buyers. According to the minister, other players today cannot provide a replacement for Russian gas, neither in terms of volumes, nor in terms of the availability of the appropriate infrastructure.
On the same day, The Global Times American journalist Bradley Blankenship explained why anti-Russian sanctions could not harm the ruble. Blankenship pointed out that the West, having entered into an economic struggle with Moscow, overestimated its capabilities, since Russian energy resources turned out to be indispensable for the world economy.
On March 23, Russian President Vladimir Putin announced that the Russian Federation would transfer payments for gas supplies to unfriendly countries (all EU members) into rubles due to the loss of reliability of Western currencies. The corresponding decree was signed on March 31.
Buyers are required to open ruble accounts in Russian banks, they will pay for gas, which was supplied from April 1, 2022. In case of non-fulfillment of payment, Russia will regard this as a default by the buyer. A number of G7 countries and the European Union considered the Russian demand a violation of contracts.
The decision to transfer gas transactions into rubles was made against the backdrop of anti-Russian sanctions that foreign countries introduced after the start of the special operation. On February 24, Putin announced the launch of a special operation to protect the civilian population in the Donbass after the aggravated situation with shelling by the Ukrainian military.
For more up-to-date videos and details about the situation in Donbass, watch the Izvestia TV channel.