Russia: As gas export payments will be paid in ruble, currency recovers
2 Min Read
"Unfriendly countries" will have to bend to Moscow's new rules.
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The Russian ruble was compromised upon the announcing of the Western sanctions earlier this month.
On Wednesday, the ruble increased in value, reaching a three-week high after Moscow announced that gas exports' payments to a number of Western countries will be dealt with by the Russian ruble.
The Russian currency, upon the announcement, has risen to a three-week high of 95 rubles against the US dollar, also gaining 3.5% against the Euro, exchanging at 110.5 rubles per euro.
Earlier this month, the Russian ruble reached historic lows upon the authorization of the special military operation and the announcing of West-led sanctions against the Russian economy. On March 7, the currency dropped to historic lows to 132 rubles per dollar, and 147 rubles per euro. Before that period, the currency exchanged at 75 rubles per dollar and 85 rubles per euro.
On Wednesday, Russian President Vladimir Putin announced that Moscow plans to abandon all "compromised" currencies in gas payment settlements, adding that the West's illegitimate decisions to freeze Russian assets destroyed Moscow's confidence in their currencies.
Therefore, according to the Russian president, "unfriendly countries" will have to pay in rubles for Russian gas.
Putin ordered the Central Bank and the Kremlin to determine, within one week, the order of operations for the purchase of the Russian currency on the domestic market by Russian gas buyers.
He assured that Russia will continue to supply gas in accordance with the volumes and pricing principles set in previous contracts - however, only the currency in which countries are paying will change.
Read more: India, Russia discuss Rupee-Ruble exchange amid sanctions
Just a few days ago, Germany and Qatar agreed on a long-term partnership for energy supply.
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