Russia Demands Energy Payments in Roubles, Germany Calls It 'Blackmail'

Putin signed a decree earlier this week that left Europe risking losing more than 33 percent of its gas supply.

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Russian President Vladimir Putin has reportedly demanded that "unfriendly countries" pay for Russian gas in roubles from Friday, 1 April, and has threatened to cut their supplies otherwise.

European countries rejected the ultimatum, with Germany referring to the demand as "blackmail."

German Chancellor Olaf Scholz himself confirmed that energy payments would be made in euros.

"In a conversation with the Russian president I have stated clearly that this will stay that way," he said during a press conference on Thursday, as quoted by Reuters.

Putin signed a decree on the same day that left Europe risking losing more than 33 percent of its gas supply.

Germany is extremely reliant on Russian energy; it is dependent on Russia for more than 60 percent of its energy.

It already has an emergency plan that could lead to energy rationing. Austria is also taking a similar step.

If Russia has a monopoly over energy sales, then Europe could be said to also have some leverage by virtue of being the largest purchaser.

Russia can't easily substitute Europe as its main buyer and will have lots of money to lose if the latter were to find alternative sources of gas and energy.

You can read more about this interdependence here.

(With inputs from Reuters.)