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Russian President Vladimir Putin said on Thursday that foreign buyers must pay for Russian gas in roubles starting April 1 as Western sanctions hamper country’s economy.
Putin also warned that contracts would be halted if the payments were not made.
Europe is majorly dependent on Russia for its gas demands as the European Union gets 40% of its gas from the country.
"In order to purchase Russian natural gas, they must open rouble accounts in Russian banks. From these accounts, payments will be made for gas delivered starting from tomorrow," Putin said in televised remarks, reported Reuters.
"If such payments are not made, we will consider this a default on the part of buyers, with all the ensuing consequences. Nobody sells us anything for free, and we are not going to do charity either - that is, existing contracts will be stopped."
Russia had earlier demanded payment in roubles which was rejected by western countries and governments as most of the contracts are in euros or dollars.
Germany on Wednesday had warned of a natural gas emergency amid threats of supply disruptions from Russia.
Germany imported around 55% of its gas supplies from Russia last year.
Picture Credits: Reuters