Ruble payment mechanism in effect – Kremlin

Gazprom is working on implementing the new payment mechanism for natural gas, Kremlin spokesman says

The Kremlin on Tuesday said that Gazprom was implementing the presidential decree that requires payment for gas supplies in rubles.

“All the contacts with buyers of gas have been made via Gazprom, so it will publish information on the results of the talks,” Kremlin spokesman Dmitry Peskov told reporters.

According to Peskov, payments for gas deliveries that took place under the new scheme are expected in May.

Last month, Putin demanded that ‘unfriendly’ countries pay for Russian gas in rubles. To do this, they would need to open accounts at Gazprombank and make payments in euros or dollars that would then be converted into rubles. Putin has warned that failure to comply with the currency switch would mean that affected countries risked losing Russian gas supplies.

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A source familiar with the talks with the gas buyers told Reuters there was no clarity on how the scheme would be implemented, but that work on reaching an agreement continued.

Several Russian gas buyers have since signaled they might be able to agree to Moscow’s demands. On Monday, Uniper, Germany’s major importer of Russian gas, said it would be possible to pay for future supplies without breaching Western sanctions.

On Tuesday, a Polish news portal reported that Russia had suspended natural gas deliveries to Poland via the Yamal-Europe gas pipeline, after Warsaw rejected Moscow’s rubles for gas demand.

The report, citing sources within the Polish government and state energy company PGNiG, has not been officially confirmed by Moscow or Warsaw.

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