Tag: rubles

GOT RUBLES?

Submitted by Hardscrabble Farmer

WHEN IS A SANCTION NOT A SANCTION?
REDEFINING WORDS ONE LANGUAGE AT A TIME.

Reuters

​EU says pay for Russian gas in euros to avoid breaching sanctions

European Union flags fly outside the European Commission headquarters in Brussels

BRUSSELS, April 22 (Reuters) – EU companies may be able to work around Russia’s demand to receive gas payments in roubles without breaching sanctions if they pay in euros or dollars which are then converted into the Russian currency, the European Commission said on Friday.

The companies would also need to seek additional conditions on the transactions, such as a statement that they consider their contractual obligations complete once they have deposited the non-Russian currencies.

Moscow has warned Europe it risks having gas supplies cut unless it pays in roubles. In March it issued a decree proposing that energy buyers open accounts at Gazprombank to make payments in euros or dollars, which would then be converted to roubles.

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Weaponizing Russian Energy

Guest Post by Martin Armstrong

In an attempt to boost the ruble and avoid sanctions, Russia will stop accepting payments in dollars and euros from “unfriendly countries.” India is on board and willing to change to a SWIFT alternative to easily convert rupees to rubles. The G7 has declared that they will not pay for gas in rubles. “[A]ll G-7 ministers agreed completely that this (would be) a one-sided and clear breach of the existing contracts,” German energy minister Robert Habeck stated. “Payment in ruble is not acceptable, and we will urge the companies affected not to follow Putin’s demand,” Habeck said.

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Kremlin Threatens To Halt Supplies As G7 Ministers Reject “Unacceptable” Demand To Pay For Gas In Rubles

Via ZeroHedge

Update(9:01ET): Russia on Monday has issued a firm and unyielding response to G-7 ministers who had dismissed as “unacceptable” its plan to only accept ruble payments for Russian gas going to “unfriendly” nations.

Earlier Monday German Economy Minister Robert Habeck said from Berlin that the Kremlin demand for natural gas contracts to be paid in rubles is a “one-sided and clear breach of contracts” – saying the contracts must be honored under prior conditions, according to Bloomberg. “That means that a payment in rubles is not acceptable and we urge the relevant companies not to comply with Putin’s demand,” Habeck said. “Putin’s effort to drive a wedge between us is obvious but you can see that we won’t allow ourselves to be divided and the answer from the G-7 is clear: the contracts will be honored.”

The Kremlin’s quick shooting down of the German economy minister’s comments and the G-7’s stance on the ruble came Monday via a Russian lawmaker to state-run RIA Novosti: “Russian lawmaker Abramov says G7’s refusal to pay in Russian roubles for gas will definitely lead to a halt in supplies.”

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