Putin tells Europe: Pay in roubles or we’ll cut off your gas

Russian President Vladimir Putin demands foreign buyers pay Russian gas in a ruble from Friday or has their supply cut, the capital movement that is rejected and where Germany said it was as big as extortion”.

Putin’s decision on Thursday made Europe face the prospect of losing more than a third of the gas supply. Germany, the most dependent on Russia, has activated an emergency plan that can cause allotment in the European largest economy.

Energy exports are the strongest Pupin lever when he tried to again against Western sanctions forced on Russian banks, companies, employers and Kremlin colleagues in response to Russian invasion to Ukraine. Moscow called his Ukrainian action as a “special military operation”.

Putin said the Russian gas buyer “must open a ruble account at Russian banks. From this account that payment will be made for gases sent from tomorrow,” or April 1.

If such payments are not done, we will consider this default in the buyer’s section, with all the next consequences. No one sells anything for free, and we will not do charity too – that is, the existing contract will occur,” he said In comments broadcast on television.

Not immediately clear whether in practice there may be a way for foreign companies to continue payment without using a ruble, which is returned by the European Union and the G7.

Italy said it was related to European partners to provide strong responses to Russia, adding its own gas reserves would allow economic activities to continue even if there was a disturbance.

Meanwhile, the German energy company said they were in the conversation close to Berlin about how to respond to the possibility of supply disorders and arranging a road map about what to do if Russia stopped gas exports.