Kremlin insists that gas be paid in rubles

BERLIN — Russian President Vladimir Putin issued a decree Thursday demanding payment for natural gas in rubles but appeared to temper the order by allowing dollar and euro payments through a designated bank, the latest twist over energy supplies that Europe relies on to heat homes and generate electricity.

The measure got a cautious reception from European leaders who insist payment will remain in euros and dollars and want to see the fine print of how the decree will be implemented.

Countries deemed “unfriendly” for imposing sanctions on Russia over its war in Ukraine can continue to pay in foreign currency through a Russian bank that will then convert the money into rubles, according to a Kremlin decree published by state media Thursday. It came a day after the leaders of Italy and Germany said they received assurances from Putin about gas supplies.

Putin talked tougher, saying Russia will start accepting ruble payments Friday and contracts will be stopped if buyers don’t sign up to the new conditions, including opening ruble accounts in Russian banks.

“If these payments are not made, we will consider it a failure of the buyer to fulfill its obligations, with all the ensuing consequences,” Putin said.

His proposal has caused natural gas prices to gyrate and raised fears it could be a prelude to an interruption of supplies to Europe, which is heavily dependent on Russian natural gas and would struggle with a sudden cutoff.

The German government Wednesday declared an early warning of an energy emergency, the first step toward imposing gas rationing for industry to spare homes and hospitals.