Putin Wants ‘Unfriendly’ Countries to Pay for Russian Gas in Roubles

Putin Wants ‘Unfriendly’ Countries to Pay for Russian Gas in Roubles

Russia will seek payment in roubles for gas sales from "unfriendly" countries, President Vladimir Putin said on Wednesday, sending European gas prices soaring on concerns the move would exacerbate the region´s energy crunch.

European countries' dependence on Russian gas to heat their homes and power their economies has been thrown into the spotlight since Moscow sent troops into Ukraine on Feb. 24 and the subsequent imposition of Western sanctions aimed at isolating Russia economically.

With the financial noose tightening and the European Union split on whether to sanction Russia's energy sector, Putin hit back with a clear message -- if you want our gas, buy our currency.

"Russia will continue, of course, to supply natural gas in accordance with volumes and prices ... fixed in previously concluded contracts," Putin said at a televised meeting with top government ministers.

"The changes will only affect the currency of payment, which will be changed to Russian roubles," he said.

Russian gas accounts for some 40% of Europe's total consumption and EU gas imports from Russia have fluctuated between 200 million to 800 million euros ($880 million) a day so far this year. The possibility a change of currency could throw that trade into disarray sent some European wholesale