European countries agree to pay in rubles

The Rise of ruble will not stop. After the decision of Vladimir Purtin To calculate Russian gas in rubles, customers agree to comply with the new requirements set by the head of the Kremlin.

The ruble is well used to pay for Russian gas

In order to guarantee 100% of his payments, Vladimir Pourtine has decided that all states buying Russian gas will use the local currency, the ruble. Several buyers of Russian gas, especially European countries, have already agreed to convert payments into rubles.

The country is waiting for a decision from other importers, Russian Deputy Prime Minister Alexander Novak wrote in his article for Energy Policy magazine.

“Several buyers have already accepted the transfer of gas payments in rubles and we are waiting for the decisions of other importers”says Alexander Novak, adding that the conditions for buyers remain as comfortable as possible.

The deputy prime minister pointed out that payments for gas are transferred to rubles because Russia wants to receive a 100 percent payment guarantee.

“I would like to emphasize that the transfer of payments for gas in local currency on the Russian side is logical and is done for objective reasons – we want to receive payment for the delivered goods with a 100 percent guarantee. This confidence in Russia is conveyed through the payment model we are proposing, as opposed to the one that was in place until recently.”remarked Novak.

He reminded that the EU plans to compensate for the rejection of Russian energy sources by diversifying gas supply, accelerating the transition to renewable types of gas, replacing gas in heating systems with other types of fuel and generating electricity from other sources.

For Alexander Novak, LNG is not a credible solution

“All of these measures will reduce demand for Russian gas by two-thirds (67%) by the end of the year, according to the European Commission. They also plan to achieve energy independence by increasing the share of renewable energy sources. However, in March they noticed the decline in wind energy,” notes Novak.

Instead of Russia, US LNG producers claim to be the main gas suppliers in Europe, which aim to capture a large share of the European market, he said.

“But there are a number of important nuances. The lack of infrastructure needed to receive LNG will not allow for a rapid increase in supplies,” concluded the Deputy Prime Minister.

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