MOSCOW — President
Vladimir Putin said Wednesday Russia will only accept payments in rubles for
gas deliveries to “unfriendly countries”, which include all EU members, after
Moscow was hit by unprecedented sanctions over Ukraine.
اضافة اعلان
Immediately after his announcement, the ruble —
which has plummeted since the start of the Ukraine conflict — strengthened
against the dollar and euro.
“I have decided to implement a set of measures to
transfer payment for our gas supplies to unfriendly countries into Russian
rubles,” Putin said during a televised government meeting.
He added, however, that
Russia will continue
supplying the volume of gas outlined in its contracts.
Putin ordered Russia’s central bank to implement the
new payment system within a week, saying it must be “transparent” and will
involve the purchase of rubles on Russia’s domestic market.
Putin also hinted that other Russian exports may be
affected.
“It is clear that delivering our goods to the
European Union, the United States and receiving dollars, euros, other
currencies no longer makes sense to us,” Putin said.
Ukraine was quick to denounce Russia’s “economic
war” on the EU and its efforts to “strengthen the ruble”.
“But the West could hit Russia with an oil embargo
that would cause the Russian economy to plunge,” Ukrainian presidential advisor
Andriy Yermak said on Telegram.
“This is now a key economic battle, and the West
must collectively win it,” he added.
A senior EU diplomat, speaking on condition of
anonymity, said a “contract is a contract” but “we will have to see in the
coming weeks what this actually means in practice”.
Western countries have piled crippling sanctions on
Moscow since it moved troops into Ukraine.
The West froze some $300 billion of Russia’s foreign
currency reserves abroad, a move that Foreign Minister
Sergei Lavrov on
Wednesday described as “theft”.
But while the United States banned the import of
Russian oil and gas, the EU — which received around 40 percent of its gas
supplies from Russia in 2021 — has retained deliveries from Moscow.
Brussels, however, has set a target of slashing
Russian gas imports by two-thirds by the end of the year and is eyeing an oil
embargo.
‘Historic decision’
Russia has been moving to
“de-dollarize” its economy for years, since the introduction of Western
sanctions over its annexation of
Crimea from Ukraine in 2014.
In March 2019, the Russia state energy giant Gazprom
announced its first sale of gas for rubles to an unnamed western European
company.
Deputy Prime Minister
Alexander Novak said Wednesday
a shift to trading in the national currency would “increase reliability”.
He warned that a full embargo on Russian oil and gas
would lead to a “collapse” of the global energy markets and “unpredictable”
spikes in prices.
The speaker of Russia’s lower house State Duma,
Vyacheslav Volodin, hailed Putin’s move as “a historic decision”.
“The rejection of payments in dollars and euros is a
historic decision, without it, it is impossible to create the financial and
economic sovereignty of Russia,” Volodin said on Telegram.
Analyst Timothy Ash of
BlueBay Asset Management
said, however, that it was “hard to see Putin’s move as ruble positive”.
Ash said Putin is essentially trying to force
Western countries to trade with Russia’s central bank, which they have sanctioned.
“It will just accelerate diversification away from
Russian energy,” he added.
According to investment group Locko Invest, the
countries declared “unfriendly” by Russia account for more than 70 percent of
Russia’s energy exports in terms of earnings.
The group also highlighted the danger for Gazprom of
running out of foreign currency to honor its debts in the future.
But Andrew Weiss of the
Carnegie Foundation said:
“Putin definitely knows how to build and exploit leverage”.
“Putin has routinely used escalation in such situations to
upend his opponents’ best-laid plans. No reason to doubt that that’s changed,”
Weiss said on Twitter.
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