Germany examines Russian gas payment terms as supply fears grow
The German government said on Friday it was "examining" the Kremlin's decree that payments for Russian gas must now be made in rubles, which has raised fears supplies will be cut.
Berlin and Western partners have insisted that their contracts with Russian companies state clearly that their payments can be made exclusively in euros or dollars.
German Finance Minister Christian Lindner on Thursday slammed as attempted "blackmail" any insistence by Moscow to now be paid in rubles in the face of Western sanctions over the Ukraine war.
President Vladimir Putin had earlier warned "unfriendly" countries, including all EU members, that they would be cut off from Russian gas unless they opened an account in rubles to pay for deliveries.
Deputy German government spokesman Wolfgang Buechner said Friday Berlin had received the "decree" in writing and was evaluating it "to determine its specific impact".
An economy ministry spokeswoman told the same briefing that it was too soon to assess the effect of the new Russian policy but noted that it gives the Gazprom Bank, charged with implementing the policy, "10 days to explain the details of the procedure" for payment.
READ ALSO: What would Germany do if Russia cuts off the gas supply?
Germany and Austria activated their emergency plans to secure gas supplies on Wednesday, as concerns rose that Russia could stop deliveries.
Before Moscow began its war in Ukraine, a third of Germany's oil imports, 45 percent of its coal purchases and 55 percent of gas imports came from Russia.
Economy Minister Robert Habeck said last week that it would likely take until mid 2024 for Europe's top economy to wean itself off Russian deliveries.
Comments
See Also
Berlin and Western partners have insisted that their contracts with Russian companies state clearly that their payments can be made exclusively in euros or dollars.
German Finance Minister Christian Lindner on Thursday slammed as attempted "blackmail" any insistence by Moscow to now be paid in rubles in the face of Western sanctions over the Ukraine war.
President Vladimir Putin had earlier warned "unfriendly" countries, including all EU members, that they would be cut off from Russian gas unless they opened an account in rubles to pay for deliveries.
Deputy German government spokesman Wolfgang Buechner said Friday Berlin had received the "decree" in writing and was evaluating it "to determine its specific impact".
An economy ministry spokeswoman told the same briefing that it was too soon to assess the effect of the new Russian policy but noted that it gives the Gazprom Bank, charged with implementing the policy, "10 days to explain the details of the procedure" for payment.
READ ALSO: What would Germany do if Russia cuts off the gas supply?
Germany and Austria activated their emergency plans to secure gas supplies on Wednesday, as concerns rose that Russia could stop deliveries.
Before Moscow began its war in Ukraine, a third of Germany's oil imports, 45 percent of its coal purchases and 55 percent of gas imports came from Russia.
Economy Minister Robert Habeck said last week that it would likely take until mid 2024 for Europe's top economy to wean itself off Russian deliveries.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.