Putin reconsiders, again. The Russian president signed the presidential decree on the rules of natural gas trade with "hostile countries" for payment in rubles. Despite the reassurances given to the EU in the last few hours (Italy and Germany had claimed to have received guarantees from Putin on European purchases in euros) and the words of the Kremlin spokesman Peskov (according to which more time would be needed to trigger the new measures ), Moscow will suspend active contracts if the buyers do not pay in the Russian currency and to do so they will have to open special accounts in the gazprombank – the state-controlled bank – for foreign currency exchange. The news of the step back was given by the Russian leader himself, explaining that the new rules will come into force on 1 April. "If they are not carried out in this way - said the Russian president - we will consider it as a failure to fulfill the commitments, with all the ensuing implications".
Draghi himself had reported a few hours earlier at the foreign press conference of the call had with the Russian leader, reassuring that the payment in rubles was an internal matter of the Russian Federation and that Italy would continue to pay in euros. And instead Putin arrives and has second thoughts: "payments in rubles or nothing" and that "no one sells us anything for free, and we won't do charity work either". After the words of him the gas price leapt throughout Europe in Amsterdam the quotations rose to 127 euros per Mwh, before falling back to 123 euros (+1,5%). In London, the price rises to 302 pence a Mmbtu, up 5,6%.
Putin has second thoughts about gas and points the finger at the US
During his speech, Putin also expressed his disappointment with the European choices. “The Europeans will now pay more for American gas – declared the Russian Tsar – the USA is trying to solve problems to the detriment of others, of Europe. And to unload one's mistakes, trying to profit from global instability”. And then the sentence to economic sanctions. “The sanctions – concluded the Russian president – are against our freedom and our independence, against our right to be Russia. We will never give up on our values."
Germany and France "We will not allow ourselves to be blackmailed by Moscow"
Upon hearing the news, France and Germany said they were ready to cut off gas supplies should Moscow decide to shut off supplies. “There could be – said French Economy Minister Bruno Le Maire – a situation in which tomorrow, under particular circumstances, there will be no more Russian gas. It is up to us to prepare these scenarios and we are preparing”. German chancellor Olaf Scholz, who, like the Italian premier, had heard from the Russian president in the past few hours, remains firm on the need to continue paying in euros: “We looked at the contracts, it says that you pay in euros. And I made it clear in the phone call that it will stay that way. Businesses will be able to pay, they will want to pay and they will pay in euros”. After an interview with Frenchman La Maire, German Vice-Chancellor Robert Habeck announced that there will be new sanctions against Russia.
“We must not give a message that we are allowing ourselves to be blackmailed by Putin - said Habeck - Contracts must be respected. Instead La Maire firmly reiterated "we will not accept in any way to pay for the gas in other currencies than those sanctioned by the contracts".
