Germany rejects Russia's demand for gas payments in rubles

Like other European Union countries, Germany decided to reject Moscow's demand to pay for Russian natural gas exports in rubles. Western partners did not buckle under either persuasion or threats, saying that Gazprom would have to receive payments in euros or dollars as before.

The recent decree signed by President Vladimir Putin, forcing "unfriendly" states to pay for Russian gas supplies in rubles, provoked outrage among some buyers. According to German Economy Ministry spokeswoman Annika Einhorn, the country intends to keep paying for Russian gas in dollars and euros. As an argument, the official stated that contracts must be respected and payments must be made in the currencies agreed earlier – dollars and euros. In this regard, the position of both the German government and buyers remains unchanged, she added.

Einhorn also noted that Berlin did not agree to the new payment method but "asked for written information to better understand the procedure".

In late March, Germany advised local energy providers not to pay for Russian gas in rubles, as demanded by Moscow. "Vladimir Putin is trying to improve his economic situation here. If you pay in rubles - if you pay entirely in rubles - then it strengthens his currency," German Finance Minister Christian Lindner said. According to German Chancellor Olaf Scholz, gas supply contracts are denominated in euros or dollars. Thus, the European Union assumes that it will continue to honor their terms.