Russian President Vladimir Putin attends a meeting with government officials via video link at the Novo-Ogaryovo state residence outside Moscow, Russia March 23, 2022. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS

March 31 (Reuters) – Russian President Vladimir Putin said on Thursday he had signed a decree stipulating that foreign buyers must pay in rubles for Russian gas from April 1 and that contracts would be halted if such payments were not met. not done.

“To buy Russian natural gas, they need to open ruble accounts in Russian banks. It is from these accounts that payments for gas delivered from tomorrow will be made,” Putin said in televised remarks. .

“If such payments are not made, we will regard this as a default on the part of the buyers, with all the consequences that flow from it. No one is selling us anything for free, nor will we make any charity – that is, existing contracts will be terminated.”

Russia provides around a third of Europe’s gas, so energy is the most powerful lever at Putin’s disposal as he tries to retaliate against harsh Western sanctions following his invasion of Ukraine.

His decision to impose ruble payments boosted the Russian currency, which fell to historic lows after the Feb. 24 invasion but has since recovered.

Western companies and governments have dismissed the move as a breach of existing contracts, which are fixed in euros or dollars. France’s economy minister said France and Germany were preparing for a possible scenario of Russian gas flows shutting down, which would plunge Europe into a full-fledged energy crisis.

An order signed by Putin established a mechanism for buyers to transfer foreign currency to a special account in a Russian bank, which would then send rubles back to the foreign buyer to make payment for the gas.

He said the change was aimed at strengthening Russia’s sovereignty and that it would meet its obligations on all contracts.

Reuters reporting; written by Mark Trevelyan, editing by Guy Faulconbridge, Gareth Jones, Alexandra Hudson

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