Ukraine war: Vladimir Putin wants ‘unfriendly’ countries to pay for Russian gas in roubles
- Europe’s dependence on Russian gas has been thrown under the spotlight amid Western sanctions over Moscow’s invasion
- Putin’s message sent prices soaring on fears that such a move would worsen the region’s energy crunch
Russia will seek payment in roubles for gas sold to “unfriendly” countries, President Vladimir Putin said on Wednesday, and European gas prices soared on concerns the move would exacerbate the region’s energy crunch.
European nations and the United States have imposed heavy sanctions on Russia since Moscow sent troops into Ukraine on February 24. But Europe depends heavily on Russian gas for heating and power generation, and the European Union is split on whether to sanction Russia’s energy sector.
Putin’s message was clear: if you want our gas, buy our currency. It remained unclear whether Russia has the power to unilaterally change existing contracts agreed upon in euros.
The rouble briefly leapt after the shock announcement to a three-week high past 95 against the dollar. It pared gains but stayed well below 100, closing at 97.7 against the dollar, down more than 22 per cent since February 24.
02:11
Russian superyachts targeted as countries try to punish oligarchs for Russian invasion of Ukraine
Some European wholesale gas prices up to 30 per cent higher on Wednesday. British and Dutch wholesale gas prices jumped.
