Putin: "European Countries Can Continue Paying Energy Bills in Euros"

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Russian President Vladimir Putin has reportedly stated that European countries with existing contracts with Russia can continue to pay for gas in euros instead of rubles. This move is interpreted as a measure to caution against European countries rejecting ruble payments and the increasing share of U.S. liquefied natural gas (LNG) imports in the European natural gas market.

According to foreign media including CNN on the 30th (local time), German government spokesperson Steffen Hebestreit said in a statement that "Chancellor Olaf Scholz had a phone call with President Putin, during which President Putin informed Chancellor Scholz that payments for Russian gas would continue to be made in euros rather than rubles," and "President Putin explained that if European countries transfer euros to Gazprombank, which is currently not affected by sanctions, the bank will convert them into rubles on its own."

During the call, Chancellor Scholz did not agree with the payment method explained by President Putin but requested a written explanation to better understand the detailed payment procedures, the German government said. The Russian government has announced that it will fully implement ruble payments for energy fees starting from the 1st of next month.

The Kremlin also stated on the same day that "President Putin explained that the change in payment method is a response to the European Union (EU) member states freezing the Russian Central Bank's foreign currency assets in violation of international law." It added, "President Putin emphasized that this decision should not lead to a deterioration of contract terms for European companies importing Russian gas," highlighting that European countries are exempt from the ruble payment requirement.

Following Chancellor Scholz, President Putin also had a phone call with Italian Prime Minister Mario Draghi. During the call, President Putin reportedly explained the peace negotiations with Ukraine held in Istanbul, Turkey on the 29th and also mentioned the ruble payment measure for gas fees.

This content was produced with the assistance of AI translation services.