Germany advises Putin to consider the repercussions of requesting energy payments in rubles.

• Germany's Finance Minister Christian Lindner stated on CNBC Monday that his country is entirely opposed to any form of blackmailing.
• The European Union's reliance on Russian energy has hindered its ability to impose an oil embargo on Moscow as part of its broader sanctions against the Kremlin.
• In contrast to a choice made by the White House, which prohibited imports of Russian oil and gas.

Germany cautions Russian President Putin on the potential repercussions of requesting energy payments in rubles.

Last week, Putin announced that Russia would require "unfriendly" countries to pay for natural gas in rubles, resulting in a rise in European gas prices.

Putin is attempting to bolster the value of rubles by requesting payments in Russian currency instead of dollars or euros, as per the contract. Since the start of Russia's invasion of Ukraine on February 24th, the value of the ruble has increased by almost 13% against the dollar. Early in March, it had spiked by around 85%.

Germany's Finance Minister, Christian Lindner, stated that he would not be coerced by Russian demands.

Lindner stated that his company is entirely opposed to blackmailing and that the treaties are based on euro and U.S. dollar. He recommended that private sector companies pay Russia in euro or dollar.

He stated that if Putin refuses to accept this, it is up to him to consider the consequences.

Last week, Germany's Chancellor Olaf Scholz stated that using rubles to pay for oil would violate contractual obligations, while Italian officials declared they would not pay in rubles as it would aid Russia in evading Western sanctions due to its invasion of Ukraine.

The ongoing supply of natural gas from Russia to Europe could be disrupted due to tensions over future payments. While the region receives about 40% of its gas imports from Russia, this percentage is even higher for some European nations, including Hungary, which obtained 95% of its gas imports in 2020 from Russia.

The region's reliance on Russian energy has prevented the bloc from imposing an oil embargo on Moscow as part of its sanctions regime, in contrast to the White House, which has banned Russian oil and gas imports.

The European Union has announced plans to reform its energy policy towards Russia and decrease its reliance. An earlier proposal suggested reducing Russian gas imports by two-thirds by the year's end.

Lindner stated that we will find solutions and are currently working on reducing our dependence on Russian imports. If Putin decides to cut his supplies, we must act quickly to become independent from Russia.

The US has announced a new deal with the EU to supply the bloc with 15 billion cubic meters of liquefied natural gas this year, as the region scrambles to source its energy from elsewhere.