Transition to Payments for Russian Gas in Rubles: One Step Beyond
Transition to Payments for Russian Gas in Rubles: One Step Beyond

Author(s): Vasily Tkachev
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Supranational / Global Economy, International relations/trade
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: gas; international trade; payments
Summary/Abstract: Russia has long dominated in the supply of gas to many European countries, at the same time being heavily dependent on the foreign currency revenues from gas exports to cover its foreign currency demand. Therefore the Russia-Europe gas trade was considered mutually beneficial. Geopolitical tensions of spring 2022 changed this status quo. Russia required gas to be paid in rubles. The paper lays out an analytical framework for understanding the reasons and consequences of this drastic move based on the combination of macro- and micro-level challenges. We argue that the new mechanism of the Russian gas payments introduced in 2022 should be considered transitional to a potential future radical overhaul of the payments for Russian exports.

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