Finance News

The German company will buy Russian gas in rubles

Europe is realizing the importance of Russia’s gas. The West imposed sanctions on Russia’s oil and gas after it imposed war on Ukraine. In response, Russia said it would have to pay in rubles to buy gas. Even though no one has been talking about it for so long, this time a German company has said that they will buy gas in rubles.

However, this trade will not be directly in rubles. The company, called Unipart, said it would pay for the gas in euros, which would then be converted into rubles. Not only Unipar, but other energy companies in Europe are also reportedly considering this route. News from the BBC.

UNIPAR’s decision has been accused of violating EU sanctions. However, Unipar said it was not violating the ban. A spokesman for the BBC told the BBC: “We are trying to figure out how to convert the currency without violating the embargo.”

Uniper said it would not be possible for them to run in the short term without Russian gas. It will have a dramatic effect on the economy.
Russia announced last month that non-aligned nations would have to pay in rubles to buy oil and gas from them. Russia has taken steps to strengthen its currency by overcoming Western sanctions.

The central bank has warned that Germany could be in a recession if it does not import gas from Russia. Last Friday, Germany’s central bank expressed concern. However, the central bank has also said that even if the recession strikes, it will not be like 2020. News from The Guardian.

The Guardian reports that the European Union is rapidly moving to impose sanctions on Russia’s gas. If that is the case, Germany’s central bank estimates that production could fall by 175 billion euros this year. This could reduce Germany’s gross domestic product (GDP) growth by 2 percent compared to 2021.