Putin's Gas Payment Decree Sparks Geopolitical Energy Shift

Russian President Vladimir Putin issued a decree allowing foreign gas buyers to pay in roubles through other Russian banks, as Gazprombank faces U.S. sanctions. This move aims to maintain Russian gas exports amidst a transit deal expiration with Ukraine and payment challenges for European buyers.

President Vladimir Putin has initiated a significant shift in how foreign buyers can pay for Russian gas. By permitting payments in roubles through various Russian banks, Putin aims to circumvent the sanctions imposed on Gazprombank by the United States.

This development comes at a crucial time, as the transit agreement between Moscow and Kyiv, facilitating approximately half of the Russian gas supply to Europe, is set to expire on December 31. Putin has made it known that no new transit deal will be established, but he reassures that Russia will manage without it.

The move has generated uncertainty among European buyers about its effectiveness in resolving payment issues while impacting countries like Slovakia, Austria, Hungary, and regions like Moldova's Transdniestria, which depend heavily on Russian gas supplies.

(With inputs from agencies.)