At least one European Union member country is saying they’ll buy Russian gas with rubles. Slovakia has said that their country can’t function without Russian gas and that they have no choice but to agree to Russia’s terms. A large majority of their gas comes from Russia.
RT:
Slovakia will pay for Russian natural gas in rubles if that’s what it takes to keep the commodity flowing, Slovak Economy Minister Richard Sulik has said on national television.
“If there is a condition to pay in rubles, then we will pay in rubles,” Sulik said. He stressed that Russian imports account for roughly 85% of all Slovakian gas supplies, so the country’s authorities will remain pragmatic on the issue.
“We cannot be cut off from gas,” Sulik emphasized, urging the rest of Europe to jointly seek a solution.
Nearly all of the countries of the European Union, of which Slovakia is a member, slapped Russia with economic sanctions over the past month, jeopardizing Russia’s ability to receive payments from trade partners in the European currency. In response, Russian President Vladimir Putin last week signed a decree introducing a new ruble gas payment mechanism.
Other countries like Hungary have made similar statements about how they can’t be cut off from Russian gas. You’ll probably see other EU countries agree to the ruble terms over the next few weeks and months.
I said from the start that it would be impossible for all of Europe to maintain a unified front against Russia over the Ukraine situation. Russia has actually used the situation to their advantage by forcing the countries that went along with these dumb sanctions to bolster the ruble.
