Putin demands gas payments in roubles or will stop Europe supplies

Russia President Vladimir Putin on Thursday signalled he could override European gas supply contracts unless “unfriendly” states pay in roubles from Friday.

“To buy Russian gas, they need to open rouble accounts in Russian banks. It is from those accounts that gas will be paid for, starting 1 April. If such payments aren’t made, we will consider this a failure by the client to comply with its obligations," he said in a televised appearance.

According to an order signed by Putin, gas buyers should open accounts with the state-controlled Gazprombank to facilitate currency exchange on purchases.

The G7 -- US, UK, France, Germany, Italy, Japan and Canada – has so far refused to meet his demand. The Russian currency plunged after Moscow's unprovoked invasion of Ukraine last month.

Russia's central bank stepped in to prop up the rouble and the country's exporters have been ordered to convert 80% of their receipts into the domestic currency to provide extra support as the war eats into their reserves.