Russian President Vladimir Putin has threatened to cut off gas supplies to western Europe today unless buyers use roubles as the currency. It is the latest twist over energy supplies that Europe relies on to heat homes and generate electricity.
Mr Putin insists Russia will start accepting rouble payments today and contracts will be stopped if buyers do not sign up to the new conditions, including opening rouble accounts in Russian banks “If these payments are not made, we will consider it a failure of the buyer to fulfil its obligations, with all the ensuing consequences,” Mr Putin said.
Mr Putin announced last week that Russia will demand “unfriendly” countries pay for natural gas only in Russian currency, instructing the central bank to work out a procedure for buyers to acquire roubles in Russia. The Group of Seven major economies, including Italy and Germany, rejected the demand.
