empty
28.03.2022 11:13 PM
The G7 countries rejected the possibility of paying for gas in rubles

The energy ministers of the G-7 countries made a decision on the Kremlin's demands for LNG payments in rubles. On Monday, after talks with his counterparts, German representative Robert Habeck made a statement on behalf of the entire seven that these countries had rejected the demands of President Vladimir Putin to pay for Russian gas in the national currency of the Russian Federation.

The G7 countries rejected the possibility of paying for gas in rubles

This image is no longer relevant

"All G7 ministers agreed that this is a unilateral and clear violation of existing contracts," German Economy and Climate Minister Robert Habeck said in an interview that took place immediately after a virtual conference with G7 energy ministers.

The minister stressed that "contracts signed are valid and companies must comply with them." Payment in rubles remains unacceptable.

In addition, the minister separately appealed to national and international companies not to make concessions to the Kremlin.

"Putin's attempt to divide us is obvious, but ... we will not be divided," he summed up his speech.

Well, it seems that the legal force of the treaties takes precedence over the sanctions turbulence. Taking into account the fact that further sanctions in the form of fines follow for refusing to fulfill the terms of LNG supply contracts, it may not be profitable for Moscow to insist on its own.

Due to the fact that now a large amount of the Russian foreign exchange reserve is immobilized in foreign banking institutions, it will be easier than ever to collect the amount of fines. Taking into account the penalties under the agreements, gas from Russia will end up being cheaper for Europe than the Kremlin expects, once again dealing a blow to the national economy.

However, there is a high probability that Moscow will not heed the arguments of reason and will continue to escalate oil and gas disputes - up to a complete break in relations.

This is a highly undesirable option for all participants in gas deals, but it seems that the Kremlin is not going to stop halfway.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trump acts, markets react: Nikkei up 2%, USD rallies

The Nikkei surged more than 2%, S&P 500 futures extended their rally, and the dollar jumped after US President Donald Trump said he has no plans to fire Fed Chairman

12:35 2025-04-23 UTC+2

US Market News Digest for April 23

The US market is showing renewed signs of instability. Positive signals about a potential de-escalation in the trade conflict with China are fueling hope, but experts warn against excessive optimism

Ekaterina Kiseleva 12:17 2025-04-23 UTC+2

Trump says markets react: Nikkei up 2%, dollar strengthens, China awaits outcome

Nikkei jumps more than 2%, S&P 500 futures continue rally Dollar jumps as Trump says he has no plans to fire Powell Hopes for China tariff easing, but no deal

Thomas Frank 10:52 2025-04-23 UTC+2

US Market News Digest for April 22

The S&P 500 and Nasdaq 100 continue to slide as mounting concerns over slowing economic growth and the impact of trade tariffs weigh on sentiment. The market remains volatile, with

Ekaterina Kiseleva 11:13 2025-04-22 UTC+2

Trump, Fed, and gold at $3,000? Markets respond to alarming signals

Investors are worried about the Fed's independence under Trump. US assets are falling, and the dollar is at a three-year low against the euro. Safe-haven currencies like

11:46 2025-04-21 UTC+2

US Market News Digest for April 21

The S&P 500 and Nasdaq slipped once again after Donald Trump lashed out at the Federal Reserve. His comments called the independence of the central bank into question, amplifying inflation

Ekaterina Kiseleva 11:41 2025-04-21 UTC+2

Trump, Fed, $3,000 Gold? Markets React to Red Flags

Investors Worried About Trump Fed Independence US Assets Fall, Dollar Hits Three-Year Low Against Euro Safe-Haven Yen, Swiss Franc Rise Gold Hits New Record High South Korea Stock Market

Thomas Frank 10:18 2025-04-21 UTC+2

US Market News Digest for April 18

Donald Trump ratcheted up his criticism against Federal Reserve Chairman Jerome Powell, once again calling for an immediate interest rate cut. This renewed political pressure adds to the tensions surrounding

Ekaterina Kiseleva 12:09 2025-04-18 UTC+2

When Giants Fall: How Alphabet and UnitedHealth Decisions Hurt the Market

Trading on U.S. stock markets ended in disarray on Thursday, with positive news from tech giants and pharma companies colliding with interest rate concerns. Market participants wavered between hopes

Thomas Frank 11:56 2025-04-18 UTC+2

Powell in danger? Can Trump fire Fed Chair and what does that mean for markets?

Donald Trump has once again set his sights on the Federal Reserve, accusing its chairman Jerome Powell of failing in monetary policy and threatening to fire him. But what lies

Аlena Ivannitskaya 08:43 2025-04-18 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.