Putin Gives Countries Buying Gas From Russia An Ultimatum In Televised Statement

Russia's President Vladimir Putin has said payments are to be made in roubles for Russian gas supplies from tomorrow, 1 April.

The president claimed that the switch was to 'strengthen our sovereignty'.

In recent weeks, the rouble has seen a decline in value following financial sanctions on the country amid the ongoing war with Ukraine.

"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."

However, a number of Western companies and governments rejected Putin's announcement, calling it a breach of existing contracts, which are set in euros or dollars. France's economy minister said France and Germany were preparing for possible scenarios in which gas flows from Russia could be halted, which would affect a large area of Europe.

Putin's proposition for Western countries to pay in roubles would mean that countries would be required to open a Russian bank account to exchange euros or dollars into roubles.

This could prove to be a difficult task, however, as some Russian banks were cut off from the SWIFT system as part of a spate of financial sanctions against the country. SWIFT is an online system that facilitates international payments.

Putin's demand for Western countries to pay in roubles would help Russia get around financial sanctions, to an extent.

Countries in need of fuel would be forced to purchase the currency through a bank, which would prop up the rouble's value, after it declined in recent weeks.