G7 rejects Russian demand for energy payments in roubles

G7 rejects Russian demand for energy payments in roubles

Energy ministers of the G7 group of major economies rejected Vladimir Putin’s demand on Monday that Russian gas should be paid for in roubles in a stand-off that is raising new doubts about the fuel’s supply to Europe.

The officials unanimously rejected the Russian president’s calls for “unfriendly” countries to pay for gas imports in roubles instead of currencies such as euros and dollars, Robert Habeck, Germany’s economics and energy minister, told journalists on Monday in Berlin.

The statement raised the possibility of gas supplies to Europe being cut off should the two sides be unable to agree on a payment currency. Habeck said G7 countries were “prepared” for “all scenarios”, including a potential halt to Russian energy supplies.

Putin announced last week that Moscow would begin to invoice European gas buyers in roubles, Russia’s latest response to unprecedented western sanctions imposed in a bid to punish him for the invasion of Ukraine.

Habeck — who was speaking after a virtual meeting with ministers from the US, UK, France, Japan, Italy and Canada — said: “All G7 ministers totally agreed that [requiring payment in roubles] would be a clear and unilateral violation of existing contracts.”

Western companies typically agree long-term supply agreements for Russian gas