Putin Discusses Gas Supply and Pricing

Russia will continue to supply gas according to the volumes and prices stipulated in earlier contracts, as the country values its reputation, stated Russian President Vladimir Putin, as reported by RIA Novosti.

Earlier, the Russian leader announced that Russia would now supply gas in rubles. The president tasked the Central Bank and the Cabinet of Ministers to determine the procedure for ruble transactions with Europe within a week.

"I would like to emphasize separately that Russia will certainly continue to supply natural gas in accordance with the pricing principles and volumes established in previously signed contracts," he said.

Putin's order signals that buyers of Russian gas in Europe (which Russian authorities have labeled as 'unfriendly') will be compelled to buy rubles on the Russian market for payment of supplies (in foreign currency, and most likely at a special rate defined by the Central Bank), while payments for deliveries will be made in rubles.

Putin explained this decision by stating that by imposing sanctions against Russia due to the war in Ukraine, the collective West has crossed all borders of trust in their currencies, and therefore, it becomes pointless for the Russian Federation to supply goods to the EU in their currency. "Thus, I have decided to stop the use of all currencies that have endangered themselves in such calculations," Putin said.