The dispute between Russia and the West over gas payments in rubles has escalated. Russia said on Monday (28/3/2022) that it would not supply gas to Europe for free as it was working out a method for receiving payments for its gas exports in rubles. However, the G7 countries rejected the request.
At a meeting of European Union leaders on Friday, no agreement emerged over Russia's request last week that "unfriendly" countries should pay in rubles, not euros, for its gas.
This policy will be implemented after the United States and its European allies cooperate in a series of sanctions aimed at Russia.
Concerns over supply security are rising after demand, with companies and EU countries trying to assess the consequences.
Russia's central bank, government and Gazprom, which accounts for 40% of Europe's gas imports, must present their proposals for ruble gas payments to President Vladimir Putin by March 31.
"We will not supply gas for free, this is clear," Kremlin spokesman Dmitry Peskov said by conference call. "In our situation, it is almost impossible and appropriate to engage in charity (with European customers)."
Russia will take a decision in due course if European countries refuse to pay in Russian currency, he added.
Meanwhile, the energy ministers of the Group of Seven industrialized countries rejected demands for the payment of the ruble. This was revealed by the German economy and climate protection minister Robert Habeck after holding talks with his colleagues.
"All G7 ministers have agreed that this is a unilateral and clear violation of existing contracts," he told reporters after a virtual conference with G7 energy ministers.
He added, "The ministers once again underlined that the contracts entered into are valid and companies must honor them... payments in rubles are unacceptable, and we ask the relevant companies not to comply with Putin's request," he said.
Operator data showed Russian gas shipments to Europe on three main pipeline routes were stable on Monday, with the Yamal-Europe pipeline continuing to flow eastward from Germany to Poland.
Russia's Gazprom said it was continuing to supply natural gas to Europe via Ukraine in line with requests from European consumers.
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