Kremlin: Russia will not cut off gas flows from today

LAST UPDATE: 14:05

Russia will not cut off gas supplies to Europe from today, as payments for deliveries due after April 1 come in the second half of this month and in May, Kremlin spokesman Dmitry Peshkov said, according to Reuters.

He told a news conference that President Vladimir Putin’s order to demand payment for gas in rubles was irreversible.

Peshkov said Russia could abandon the ruble payment at some point if conditions changed, but “in the current context, the ruble is a preferred and more reliable option for us.”

Gazprom has said that Russian gas exports will continue in accordance with Russian rules, adding that today the company began informing its customers about the requested change in the ruble payment currency.

Gazprom added that it remains a responsible partner and maintains secure gas supplies.

The Kremlin said today that Moscow was not sending troops to Ukraine, a day after President Vladimir Putin signed a decree ordering the recruitment of 134,500 Russians into the army as part of Russia’s annual spring mobilization.

The issue of the participation of the drawers in the military campaign of Russia with Ukraine is extremely sensitive. On March 9, the Russian Defense Ministry acknowledged that some had been sent to Ukraine, after Putin had denied it on several occasions, saying that only professional soldiers and officers had been sent.

Finally, the Kremlin said that a Ukrainian strike on a fuel depot in the Russian city of Belgorod did not create “comfortable conditions” for the resumption of peace talks with Kyiv.

Russia on Friday accused Ukraine of attacking the warehouse, but Ukrainian authorities did not immediately respond to requests for comment.

Speaking to reporters at a news conference, Kremlin spokesman Dmitry Peshkov said authorities were doing everything possible to reorganize the fuel supply chain and avoid power outages in Belgorod.

A Russian official said earlier on Friday that two Ukrainian military helicopters had hit a fuel depot in Belgorod, making the first charge of Ukrainian air strikes on Russian territory since Moscow sent troops to Ukraine in late February.

The Putin decree and the flows of Russian gas today

Russian gas is flowing normally in Europe today, while European gas prices have continued to rise as businesses face the threat of President Vladimir Putin to cut off supplies if they do not pay in rubles.

Two of the three main Russian gas pipelines to Europe, Nord Stream 1 via the Baltic Sea and Nord Stream 1 to Slovakia via Ukraine, were operating normally, while flows through the Yamal-Europe pipeline via Belarus were reversed. .

According to the decree signed by Putin, foreign buyers of Russian gas must open accounts in rubles in the state-controlled Gazprombank from Friday, in order to be able to convert foreign currency into rubles.

Analysts say the plan, which puts Gazprom at the center of trade, is aimed more at shielding it from future sanctions than at depriving Europe of gas.

“It’s less of a controversy and more of a wrap-up. It’s a warning from Putin not to tighten economic sanctions further,” said Jeffrey Sot, of the think tank Peterson Institute of International Economics.

Energy exports are Putin’s strongest lever as he seeks to counter the sweeping Western sanctions imposed on Russian banks, companies, businessmen and Kremlin associates in response to Russia’s invasion of Ukraine, which Moscow calls a “special military operation.” business”.

But Russia has no alternative market to supply gas, so cutting off flows would also hurt its revenues.

Putin’s decision to impose payments in rubles has strengthened the Russian currency, which has fallen to historic lows since the February 24 invasion. The ruble has since recovered much of its losses.

European buyers are still willing to buy gas under existing contracts and have so far largely exempted Russian gas exports to Europe from sanctions, Rystad Energy analysts said.

So far, Gazprombank has “escaped” a ban on Russian banks from trading through the SWIFT system, although Britain froze its assets last week. Britain, however, supplies only about 4% of its gas from Russia, compared with about 40% for Germany and a third for the region as a whole.

Austrian OMV and Gazprom have held talks on paying for gas in rubles, as Russia has demanded, a spokesman said on Friday, adding that the company was still awaiting written responses.

European gas prices have risen as a result of the uncertainty that followed Putin’s decree. British and Dutch gas prices have risen between 7% and more than 10% since Putin’s announcement, but remain far from the record highs set earlier this year.