Business Maverick: Germany Rejects Putin’s Demand for Gas Payments in Rubles

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Companies buying Russian natural gas should not have to set up ruble accounts to pay for it, German Finance Minister Christian Lindner said, pushing back against a demand made last month by Russian President Vladimir Putin.

“Contracts are contracts,” Lindner said Wednesday in an interview with Bloomberg Television in Washington. “Contracts are based on dollars and euros and so private-sector companies should pay in dollars or euros.”

The Russian leader has threatened to halt gas supplies to buyers that don’t comply. Such a move could have drastic consequences for European Union economies, which rely on Russia for about 40% of their gas. German Chancellor Olaf Scholz’s chief spokesman, Steffen Hebestreit, said earlier Wednesday that the government is still analyzing Putin’s demand. Discussions about the implications are ongoing with EU partners and the European Commission, the bloc’s executive arm, he said at a regular news conference in Berlin.

 

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