BERLIN, March 30. /TASS/. German Chancellor Olaf Scholz spoke by phone with Russian President Vladimir Putin to discuss payments for Russian natural gas, a spokesperson for the German cabinet said on Wednesday.
Berlin still believes the contracts should be paid in euros and dollars, the spokesperson said.
Putin "stated that he would pass a law whereby gas supplies will be paid for in rubles starting on April 1," according to a statement from the German cabinet. Putin "stressed during the conversation that nothing would change in the contracts for the European partners," the statement said.
"Payments would still be sent exclusively in euros and, as usual, would be wired to Gazprombank, which isn’t affected by sanctions. The bank would then exchange the money into rubles," the German cabinet said in describing the proposal.
"Chancellor Scholz didn’t agree to that procedure during the conversation, but asked for the information in writing to understand the procedure better," the cabinet said.
"The G7 decision remains in force: Energy supplies are paid for exclusively in euros and dollars, as specified by the contracts," the statement said.
The German cabinet said the conversation was initiated by Russia.
Putin’s instructions
Putin earlier ordered that payments for gas supplied to unfriendly countries be done in rubles. He said Moscow will refuse to take payments under these contracts in currencies that were compromised, including euros and dollars, and ordered the government to direct Gazprom to make the necessary amendments to the contracts.
Scholz had earlier opposed paying for Russian gas supplies in rubles, pointing out that the contracts stipulated for payment in euros. He also said that Germany would reduce its dependence on Russian energy resources, but a sharp embargo could adversely affect the labor market and industry and prompt an economic crisis.
On February 24 Russian President Vladimir Putin announced a special military operation in response to a request for help by the heads of the Donbass republics. Afterward, the US, EU, UK and some other countries imposed sanctions on Russian individuals and legal entities.