Energy ministers from the Group of Seven industrialized nations unanimously rejected Russian President Vladimir Putin’s demand that natural-gas contracts be paid in rubles.
The order represents a “one-sided and clear breach of contracts,” German Economy Minister Robert Habeck said Monday after chairing G-7 talks. “That means that a payment in rubles is not acceptable and we urge the relevant companies not to comply with Putin’s demand.”
The order to have “hostile states” make natural-gas payments in rubles would essentially force European companies to directly prop up the currency after it was sent into free-fall by sanctions placed on the Russian economy following Moscow’s invasion of Ukraine. Putin ordered his government, Gazprom and the central bank to prepare all the necessary documents to switch to ruble payments by March 31.
