EU leaders dismiss Russian rouble demand as blackmail

Russian president Vladimir Putin is demanding foreign buyers pay for Russian gas in roubles from Friday or else have their supplies cut, a move European capitals rejected and which Berlin said amounted to “blackmail”. Video: Reuters

France and Germany have advised energy companies to ignore a Russian decree that, from Friday, requires all energy bills to be settled in roubles – or via rouble bank accounts.

Amid a growing energy stand-off with Moscow, US president Joe Biden speculated that Russian leader Vladimir Putin was growing increasingly isolated.

“There’s some indication that he has fired or put under house arrest some of his advisers,” said Mr Biden, before admitting he did not “have that much hard evidence”.

As week five of the war in Ukraine begins, the Red Cross hopes to evacuate residents of the devastated port city of Mariupol on Friday morning, just as Russian troops reportedly regroup in the eastern regions.

In a television address on Thursday, Mr Putin said Russian energy customers could, from Friday, pay their bills only via a rouble account with the non-sanctioned Gazprombank or be considered in “default, with all the ensuing consequences”.

Chancellor Olaf Scholz, after a phone call with Mr Putin on Wednesday evening, instructed all German customers of Russian energy on Thursday to continue paying as before.

“We’ve had a look at the contracts for gas and other deliveries and they say payment is in euro ... and in talks with the Russian president I made clear that things will stay that way,” he said. “For the [energy] firms it means that they want to, can, and will pay in euro.”

At a joint press conference, German economics minister Robert Habeck said Europe would not be “blackmailed” while French finance minister Bruno Le Maire said both nations were “preparing” for a scenario in which “there is no longer any Russian gas”.

The White House responded with a “historic release” of one-third of its oil reserves over the next six months in an effort to stabilise crude prices.

‘Build-up’ of forces

Ukrainian president Volodymyr Zelenskiy called Russia’s eastward regrouping a retreat, forced by fierce resistance of Ukraine’s armed forces. But he warned of “a build-up of Russian forces for new strikes on the Donbas” region held by separatists since 2014.

Nato secretary general Jens Stoltenberg also said to expect fresh Russian attacks, “bringing even more suffering”, days after Moscow promised a gradual “de-escalation”.

After previous failed attempts, a convoy of 45 buses is ready to enter Mariupol on Friday after Moscow agreed a three-hour ceasefire for Friday morning from 10am local time.

Mariupol, in the Donetsk region, has seen some of the war’s heaviest fighting and bombardment, and a reported 170,000 people are trapped with dwindling food and drinking water supplies.

On Friday, EU leaders will urge Beijing, rather than assist Russia, to defend an international order from which it benefits economically.