Putin: Unfriendly Countries Must Open Russian Bank Accounts to Pay for Gas

Russian President Vladimir Putin announced, on Thursday, that Moscow will stop supplying gas to countries it considers “unfriendly” unless they pay in roubles.

The decree applies to 48 foreign countries “that commit unfriendly actions toward the Russian Federation, Russian legal entities and inpiduals”.

The decree highlights the mechanism foreign buyers will have to pay for the Russian gas in roubles. They will have to open Russian bank accounts both in foreign currency and in roubles.

Gazprombank, which is already used for gas payments, is set to serve as the authorised bank and will have to conduct a check on any new client within 45 days of an account being opened, according to the decree.

“We offer contractors from such countries a clear and transparent scheme,” Putin said.

“We will continue to consistently and systematically move in this direction as part of a long-term plan, to increase the share of foreign trade settlements in the national currency and the currencies of those countries that are reliable partners,” he affirmed.

The Russian president gave the central bank, the customs authorities and the government 10 days to implement the new mechanism. He also noted that Russia might make similar changes for other exports.