Putin’s ruble decision: economists fear drastic consequences

Berlin The order by Russian President Vladimir Putin that EU states and the USA can only pay their gas bills in rubles could have a significant impact. Further details on Putin’s plan are not yet known, the implementation should be worked out within a week.

In principle, however, the announcement could indirectly force the West to decide either to circumvent its own sanctions or to boycott Russian gas. For Germany in particular, this would have significant repercussions.

So far, Russian gas suppliers like Gazprom have been paid primarily in dollars. The Russian supplier then has to exchange most of the payment for rubles with the Russian central bank.

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