Russian demand for rouble gas payments would be breach of contract, EU leaders say

(EurActiv, 25 Mar 2022) Leaders from some European Union member states said on Thursday (24 Mach) Russia’s demand that “unfriendly” countries use roubles to buy for its oil and gas could breach supply contracts.

President Vladimir Putin’s demand on Wednesday for rouble payments sent European gas prices surging and added to concerns over supply disruptions in the EU, which gets about 40% of its gas from Russia.

Germany and Italy said the move may breach energy supply contracts. German chancellor Olaf Scholz said the currency German companies must pay for Russian fossil fuels was fixed in their contracts.

“There are fixed contracts everywhere, with the currency in which the deliveries are to be paid being part of these contracts… in most cases it says euros or dollars,” Scholz said on his arrival to an EU summit in Brussels on Thursday.

That was echoed by Italian Prime Minister Mario Draghi. “This is basically a breach of contract, this is important to understand,” he said.

European Commission President Ursula von der Leyen agreed, and said the move was an attempt to circumvent EU sanctions against Russia.

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EurActiv, 25 Mar 2022: Russian demand for rouble gas payments would be breach of contract, EU leaders say