Russia-Ukraine war: G7 rejects Moscow's demand to pay for gas in Rubles, informs Germany

As the ongoing Russia-Ukraine war transcends the first month, the German Energy Ministry on Monday informed that the G7 nations have rejected Moscow’s demand to pay for their natural gas exports in rubles. The development comes five days after Russian President Vladimir Putin had declared that payments for purchasing Russian commodities supplied to the European Union and the US should be made in ruble and not in any other foreign currency. 

Speaking to the media, German Energy Minister Robert Habeck said, “All G-7 ministers agreed completely that this (would be) a one-sided and clear breach of the existing contracts. Officials from France, Germany, Italy, Japan, the United States, the United Kingdom and Canada met on Friday to coordinate their position and European Union representatives also were present."

He added, "The payment in Ruble is not acceptable and we will urge the companies affected not to follow (Russian President Vladimir) Putin’s demand.”

Putin Says He Will Only Accept Rubles For Russian Gas Deliveries

It is pertinent to mention here that nearly a week ago, Russian President Vladimir Putin had announced that payments for purchasing Russian commodities supplied to the European Union and the US should be made in Russian currency Rubles and not in any foreign currency. In his meeting with government officials, Putin had asserted that the US and EU have "generally defaulted on their obligations" to Russia. Russian President Vladimir Putin announced that the payments for exporting natural gas to unfriendly states must be accepted in ruble. Putin had further added that some Western countries have made "illegitimate" moves on freezing the Russian assets and had destroyed Russia's trust in their currencies. Putin had informed his administration that they have decided to receive payments for exporting natural gas to unfriendly states in rubles.

'Russia's Ruble is reduced to rubble': Joe Biden

Meanwhile, on March 26, United States President Joe Biden had delivered his remarks in Poland on the united efforts of the world to support the people of war-torn Ukraine. The US President had further shared details on the sanctions against Russia, stating that 141 Russian oligarchs and more than 400 government officials had been sanctioned by the US, and now 'Russia's Ruble is reduced to rubble.'

During his speech, Biden stated, "141 Oligarchs and over 400 govt officials have been sanctioned by the US. Private sectors are at their lowest. These officials and oligarchs got enormous priority from the Kremlin. Over 400 private sector companies left Russia. It takes 200 Rubles to be 1 dollar. Russia's Ruble is reduced to rubble. Their economy will be cut to half. The Ruble is crumbling now. Before this invasion, it was one of the largest economies in the world. These economic sanctions are new kinds of steps to inflict damage. Its ability to build military and ability to project power will be cut."