Putin’s Ruble Decision: Economists Fear Serious Consequences

Berlin The order by Russian President Vladimir Putin that the countries of the European Union and the United States of America pay gas bills in rubles only may have a significant impact. No further details are known about Putin’s plan, and implementation should be worked out within a week.

But in principle, the declaration might indirectly force the West to decide either to circumvent its sanctions or boycott Russian gas. For Germany in particular, this will have major repercussions.

So far, such as Russian gas suppliers Gazprom Pay mainly in dollars. After that, the Russian supplier has to exchange most of the payments in rubles with the Central Bank of Russia.

Putin now wants the West to pay suppliers in rubles right away. But there is not enough Russian currency in international financial markets, wrote economist Jens Sudcom on Twitter.