EXPLAINER: What's next for Europe's natural gas during war?
The Kremlin offered what could be seen as a loophole. Importers would simply have to establish an account in dollars or euros at a designated bank, then a second account in rubles. The importer would pay the gas bill in euros or dollars and direct the bank to exchange the money for rubles.
German officials wouldn't discuss the impact of Putin's decree other than to say they were examining it. Economy Ministry spokeswoman Beate Baron noted that Russia’s Gazprombank has been given 10 days to explain the procedure, “and of course we will in turn look carefully at that.” after the invasion. But gas exporter Gazprom already has to sell 80% of its foreign earnings for rubles, so the boost to the currency could be minimal.One motive may be political, said Stefan Meister, head of the program on international order and democracy at the German Council on Foreign Relations.
“So I think that this is also about getting support inside the country, defining who are the enemies,” Meister said.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EXPLAINER: What's next for Europe's natural gas during war?Russian President Vladimir Putin is demanding payment in rubles for natural gas — or else. Germany is talking about gas rationing in case of a cutoff. Prices for the fuel used to heat homes, generate electricity and power industry are through the roof.
Read more »
Europe rejected Putin's ultimatum. So why is Russian gas still flowing?Vladimir Putin's deadline has come and gone and Russian natural gas is still flowing to Europe.
Read more »
Natural Gas Futures: Rising bets for further upsideConsidering preliminary reading from CME Group for natural gas futures markets, traders added around 12.4K contracts to their open interest positions
Read more »
Germany prepares to ration gas as Russia demands payment in rublesRussia is demanding payment for natural gas in rubles, and it could push Germany — Europe's largest economy — into an economic crisis
Read more »
Peco seeks second rate increase in two years for natural gas customersPeco residential gas bills would increase by 13% or $12.39 a month on average over a year.
Read more »