Many have heard of the petrodollar but Russia is introducing the gasrouble

Credit: The Presidential Press and Information Office

MANY have heard of the petrodollar but Russia is introducing the gasrouble after Vladimir Putin announced on March 23 that some countries would have to pay for gas in roubles.

A number of countries who oppose the Russian invasion of Ukraine have been declared unfriendly to Moscow and as they have frozen Russian overseas assets, it no longer makes sense to accept payment in dollars or euros.

Each of the 27 European Union States alongside the USA, Australia, Canada, Singapore and the United Kingdom (including Gibraltar) are included in the list of more than 45 countries who will be required to pay in roubles if they import Russian gas.

Putin said “Russia will continue, of course, to supply natural gas in accordance with volumes and prices … fixed in previously concluded contracts”

“The changes will only affect the currency of payment, which will be changed to Russian roubles.”

State-controlled energy giant Gazprom which has in the past accepted a huge proportion of payments in euros and dollars was given just one week to amend existing contracts.

This decision has helped strengthen the value of the rouble against the euro and dollar particularly and is thought to have caught major importers of Russian gas by surprise.

According to Russian newspaper Izvestia, experts interviewed by the paper are confident that it is in fact the only way to overcome the dominant role of the dollar.

Speaking to TASS News Agency, Dmitry Peskov, press secretary of the President of the Russian Federation, said “Let’s wait until that moment,” answering a question from TASS whether European buyers would regard the decision to settle in roubles as a breach of contracts.

Countries like Germany who depend on large volumes of Russian gas will now find themselves in a dilemma as the imposed sanctions appear to have backfired on them.

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