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Strong European resistance has forced Vladimir Putin to take steps backwards, allowing Russian gas to be paid for in euros rather than rubles, as the Kremlin has insisted.
Putin personally confirmed this on the phone to German Chancellor Olaf Scholz, a move that undoubtedly makes many capitals of the old continent breathe freely.
German government spokesman Steffen Hebestreit confirmed that Putin was convinced that payments from Europe next month “would continue to be in euros.” “They will be transferred as usual to Gazprom Bank, which is not affected by the sanctions.”
It will be the bank next, which will convert the payment into rubles. A statement from the Kremlin said the decision was not expected to lead to a deterioration in contractual terms for European companies importing Russian gas.
The day before, Germany raised the alarm level for gas supplies, precisely because of Moscow’s insistence that payment be made in rubles. German Economy Minister and Vice Chancellor Robert Habeck activated the level of early warning for gas supplies, the first of three levels of alarm leading to the creation of a crisis cell within his cabinet to deal with the stability of gas supply of the country.
Gas depots in Germany are currently filled to about 25% of their capacity, Habeck said. “There is currently no shortage of supply,” he explained. “However, we must strengthen the precautionary measures in order to be ready in the event of an escalation by Russia.”
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