Russia says it won’t cut off gas supplies yet in rouble payment row

Russia has said it will not cut off gas exports to Europe yet in a standoff over its demand to be paid in roubles.

Russian President Vladimir Putin signed a decree on Thursday stating buyers must pay in roubles through Russian bank accounts from Friday.

The Kremlin said this would not affect shipments that were already paid for, with payments for deliveries after 1 April due in mid-April at the earliest.

The country is seeking to shore up the rouble as Western sanctions bite.

“Does this mean that if there is no confirmation in roubles, then gas supplies will be cut off from 1 April? No, it doesn’t, and it doesn’t follow from the decree,” Kremlin spokesperson Dmitry Peskov said.

The EU said it was talking to energy companies about how to pay for gas.

Since Russia invaded Ukraine Western nations have placed sanctions on Russian companies and individuals.

Unlike the US and Canada, the EU has not placed bans on oil or gas, as its member nations are heavily reliant on it.

Russia supplies the European Union (EU) with about 40% of its gas imports, and 30% of its oil, which are mainly paid for in euros and dollars.

The EU has no easy substitutes if supplies are disrupted, but at the same time, Russia is making €400m (£340m) per day from gas sales to the bloc and it has very few options for rerouting this supply to other markets.