Turkey has started paying for part of Russian gas in rubles

Author:
Kostia Andreikovets
Date:

Turkey started paying in rubles for part of the Russian gas. In the coming months, the share of payments in rubles will increase.

This was stated by the Minister of Energy of Turkey Fatih Donmez, writes Reuters.

Turkey and Russia agreed on ruble payments for the supply of natural gas in September. This will help Russia strengthen its currency amid Western sanctions for its invasion of Ukraine, as most energy deals are made in dollars or euros.

Donmez also commented on Putinʼs proposal to create a gas hub in Turkey. Ankara wants to develop a road map by the end of this year and present it to suppliers and buyers to "hear their opinion."

  • On March 31, Putin signed a decree according to which, from April 1, 2022, "unfriendly countries" are obliged to pay for gas in Russian rubles, otherwise there will be no supplies. Under the mechanism, European companies will continue to pay Gazprombank for their imports in euros, ensuring that they do not violate the sanctions regime. Then, at their request, this Gazprombank, which is still not under EU sanctions, converts deposits in euros into rubles for further payment. Most countries refused it.