Kushagra Bansal – Mumbai Uncensored, 1th April 2022
Amid rising oil and gas prices caused by the Russian invasion, Putin asks countries to now pay in Rubles for oil and gas imports from Friday or else their supply will be cut off.
This move, being rejected by the European countries and termed as “blackmail” by Berlin, threatens Europe to lose a third of its gas supply. Putin comments that Russia will not export gas as “charity”. Germany, being hugely reliant on Russia for gas, has already started an emergency plan that could damage the Russian economy.
Germany, being affected the most by this decree, announced they will be prepared to ration their gas requirements. Following similar statements by other European countries, Russia detailed a plan which will allow the European customers to keep paying in Euros.
After signing the decree, from 1st April, countries have to set up a K-account where the payment will be sent and exchanged into Rubles. The whole system will be managed by GazpromBank, a subsidiary of Gazprom, the biggest state energy supplier of Russia. GazpromBank can open such K-accounts without the presence of a foreign entity. These payments will not be affected by the sanctions put up by many Western backed countries.
Putin also mentioned that countries who refuse to comply to these regulations will face “corresponding repercussions”.
Putin’s move to impose ruble payments has helped to strengthen the Russian currency, which had fallen to historic lows following the invasion on February 24. Since then, Russia has been looking into ways to increase the value of Rubles, after the collapse of their economy due to multiple sanctions put up by Western countries.
Russia made a similar move with India, where in they proposed a Rupee-Ruble currency which will be legal tender in both the countries, which India is actively considering.
