The group of seven major economies (G7) agreed to reject Russia’s request to pay for natural gas exports in its currency, the ruble.
German energy minister Robert Habeck said all G7 ministers fully agreed that Russia’s demand would be biased and a clear violation of existing contracts for natural gas.
Energy ministers of France, Germany, Italy, Japan, the United States, the UK and Canada, as well as European Union (EU) energy commissioners have met via video conference and confirmed that contracts must be honored with most payments set being in euros or US dollars.
Habeck added that they would urge the affected companies not to follow the request of Russian President Vladimir Putin.
Last week, Putin announced that Russia would ask ‘unfriendly’ countries to pay for natural gas only in its currency from now on, by ordering the central bank to make procedures for buyers to get rubles in Moscow.
Unfriendly countries is a list of countries published by Moscow for engaging in activities that the government considers ‘unfriendly’ to Russia. Initially it only listed the US and and the Czech Republic before being expanded to 48 other countries including all 27 EU countries.
The demand has driven already high gas prices to rise further amid concerns that it could be the start of a natural gas shutdown, which could disrupt the European economy and hurt Russia’s finances.
Analysts described the move as an attempt to re-support the ruble which has suffered a sharp fall since Russia invaded Ukraine on February 24 and sanctions by Western countries.
