Russian gas buyers must pay in Roubles: Putin

Russian President Vladimir Putin said on Thursday evening that Russian gas buyers must pay in Roubles by opening bank accounts in Russia through which they can pay, starting Friday.

If the importers do not conform to his demands, their supplies will be cut. Europe might lose more than a third of its gas supply that comes from Russia if they do not conform. The European countries are looking for alternatives to what Germany described as “blackmail”

"If such payments are not made, we will consider this a default on the part of buyers, with all the ensuing consequences. Nobody sells us anything for free, and we are not going to do charity either - that is, existing contracts will be stopped," he said in televised speech on Thursday night.

Western governments have imposed sanctions on Russia due to the ongoing Russian military operation in Ukraine. Payment with Roubles would help  the Russian economy  mitigate some of the effects these sanctions have.

The U.S. has said it will provide at least 15 billion cubic meters more of liquified natural gas (LNG) to Europe this year; however, this is not enough to replace the amount of LNG the countries are getting from Russia. 

"What is actually happening, what has already happened? We have supplied European consumers with our resources, in this case gas. They received it, paid us in euros, which they then froze themselves. In this regard, there is every reason to believe that we delivered part of the gas provided to Europe practically free of charge," said Russia's president.

He explained that the switch to roubles would strengthen his country’s sovereignty. He added that the West used the financial system as a weapon.