European Commission President, Ursula von der Leyen, has directed companies operating in the continent to ignore Russia’s directive that payment for gas supply be made in Russian currency, Ruble, IgbereTV reports
IgbereTV had reported on Wednesday that Russia pulled the socket on Poland and Sweden, cutting the two countries from gas supply as Europe struggled to find an alternative to Vladimir Putin’s gas.
Russia is Europe’s major gas supplier, and its government had threatened to stop supply to countries offering to purchase the product in dollars or euros, following sanctions against Putin’s country over its invasion of Ukraine.
Impact of Putin’s declaration on Ruble
Already, four companies have reportedly made gas payment in Ruble, according to report on Wednesday, while accounts have been created by 10 other gas buyers to enable them trade the gas with Russian currency.
Prior to the directive by Russia, gas deals with the country had mostly been in dollar or euro, and this had weakened the Ruble against the two currencies, but in order to support the Ruble against economic sanction, Putin made the declaration.
This has now increased demand for Ruble, hence the currency reporting its highest climb in five months against the dollar, after appreciating by 0.90% on Tuesday to trade at 74.25 Ruble/$1.
