Paying for Russian gas in roubles is ‘unacceptable’, says G7

German Economic system Minister Robert Habeck says the Group of Seven has known as ‘on the businesses involved to not adjust to Putin’s demand’.

Moscow is struggling to prop up its financial system within the face of debilitating sanctions imposed by the West over his invasion of Ukraine [File: Andrey Rudakov/Bloomberg]

Paying for Russian gasoline in roubles could be unacceptable, Group of Seven (G7) international locations have reiterated, with German Economic system Minister Robert Habeck saying this current demand confirmed Russian President Vladimir Putin’s again was “towards the wall”.

“All G7 [energy] ministers agreed that this can be a unilateral and clear breach of the prevailing agreements,” stated Habeck, whose nation holds the presidency of the G7 most industrialised nations.

“Cost in roubles is just not acceptable and … we name on the businesses involved to not adjust to Putin’s demand,” he stated on Monday.

Putin introduced final week that Russia would solely settle for funds in roubles for pure gasoline deliveries to “unfriendly international locations”, which incorporates all European Union members.

Economists stated the transfer appeared designed to attempt to help the rouble, which has collapsed towards different currencies since Russia invaded Ukraine on February 24 and Western international locations responded with far-reaching sanctions towards Moscow. However some analysts expressed doubt that it might work.

Requested by reporters earlier on Monday if Russia may minimize pure gasoline provides to European clients in the event that they reject the demand to pay in roubles, Kremlin spokesman Dmitry Peskov stated in a convention name that “we clearly aren’t going to produce gasoline totally free.”

“In our scenario, it’s hardly attainable and possible to have interaction in charity for Europe,” Peskov stated.

Putin’s ‘again towards the wall’

The transfer comes as Moscow struggles to prop up its financial system within the face of debilitating sanctions imposed by the West over his invasion of Ukraine.

“I believe we should interpret this demand as Putin having his again towards the wall,” Habeck instructed reporters following a digital assembly along with his G7 counterparts.

The G7 bloc consists of Britain, Canada, France, Germany, Italy, Japan and the USA.

French President Emmanuel Macron on Friday rejected Putin’s gas-for-roubles demand.

The Russian transfer “is just not consistent with what was signed, and I don't see why we'd apply it,” Macron stated.

Like different European international locations, Germany is racing to cut back its heavy reliance on Russian power imports within the wake of the Ukraine warfare.

Germany has to wean itself off Russian oil, gasoline and coal “so as to not strengthen the regime”, Habeck stated, and since Moscow has revealed itself to be “an unreliable provider”.

Berlin was fast to drag the plug on the huge Nord Stream 2 gasoline pipeline with Russia in protest over Putin’s aggression.

However the German authorities has to this point resisted calls to impose an embargo on Russian power imports, saying that to take action may plunge Europe’s largest financial system into chaos.