President Vladimir Putin has signed a decree forcing some purchasers of Russian gas to set up a special account to pay for their supplies as the country tries to cope with the impact of Western sanctions imposed because of Moscow’s unprovoked invasion of Ukraine last month.
Putin said after signing the decree that, from April 1, buyers of Russian gas from what Russia deems “unfriendly” countries would have to set up special “K-accounts” to transfer their payments. Once the payment is received, the funds will be exchanged into rubles. The entire payment facility will be set up and run through Russia’s Gazprombank, a subsidiary of state energy giant Gazprom.
Putin also said any country refusing to use the payment mechanism will be in violation of their contracts and face “corresponding repercussions.”
European leaders have rejected paying for deliveries in rubles, saying such a move would undermine sanctions imposed on Moscow because of the war in Ukraine.
It is not clear if Russia can demand that buyers with contracts already agreed upon use the mechanism.
Radio Free Europe / Radio Liberty
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