Russia Threatens G7 Nations As Ministers Reject Gas-For-Rubles Scheme

[Yo_Mama_Been_Loggin]

Russia on Monday has issued a firm and unyielding response to G-7 ministers who had dismissed as "unacceptable" its plan to only accept ruble payments for Russian gas going to "unfriendly" nations.

Earlier Monday German Economy Minister Robert Habeck said from Berlin that the Kremlin's demand for natural gas contracts to be paid in rubles is a "one-sided and clear breach of contracts" - saying the contracts must be honored under prior conditions, according to Bloomberg. "That means that a payment in rubles is not acceptable and we urge the relevant companies not to comply with Putin’s demand," Habeck said. "Putin’s effort to drive a wedge between us is obvious but you can see that we won’t allow ourselves to be divided and the answer from the G-7 is clear: the contracts will be honored."

The Kremlin's quick shooting down of the German economy minister's comments and the G-7's stance on the ruble came Monday via a Russian lawmaker to state-run RIA Novosti: "Russian lawmaker Abramov says G7's refusal to pay in Russian roubles for gas will definitely lead to a halt in supplies."

Elsewhere the Kremlin said it's not running a "charity"

https://finance.yahoo.com/news/russia-threatens-g7-nations-ministers-190000564.html

[ananda]

1. I guess Russia doesn't need no stinking money.

Sheesh

[pecosbob]

2. We should be subsidizing alternate natural gas supplies for Europe in the short term

to encourage a clean break from Russian energy. Two-bit gangsters with gas stations...

[multigraincracker]

3. The West must begin a WWII style war effort and

soon. I'm sure that's not what we have been prepared for yet.

[Timewas]

4. All they have

Left is threats...

[CincyDem]

5. It will take decades (or longer) for businesses to trust contacts with Russia.

Based on experience, I can tell you that 20-25 years ago, there were a lot of questions in a lot of businesses about the safety of doing business in Russia. Questions were always floating around about personnel safety (nuisance kidnappings and such), asset safety (would the government nationalize the local fixed assets), and foreign exchange security (would the government screw around with the dollar ruble rate In unanticipated ways).

Since then, my sense is western business got comfortable with the probability that everything would work out.

This chit takes us back to the early 90s in terms of western confidence that the business environment being stable and predictable.