Germany, Austria and Italy to pay Russian fuel bill in Roubles, claims med

Berlin/Moscow: The European countries, cornered after Russia stopped fuel supplies to Poland and Bulgaria, have expressed willingness to pay Russian debts in Roubles. These include Austria and Slovakia, along with Germany, the leading European country. While indications were being received that the European Union is uniting against Russia, this report has created a stir in Europe. Taking an aggressive stand against this, Poland has demanded the imposition of financial penalties on the countries paying in Roubles.

On Wednesday, Russia stopped fuel supplies to Poland and Bulgaria. Gazprom, the leading Russian oil company, clarified that this decision was taken per the orders issued last month by Russian President Vladimir Putin. Gazprom said that the fuel supplies to these countries were stopped as the payments for the supplies made in April were not received in Roubles. At the same time, the company has warned that the fuel supplies will not be restarted unless these countries agree to Rouble payments. The European fuel companies have panicked with Russia tightening the noose. The fuel rates in Europe jumped by nearly 20% within hours of Russia’s stoppage of fuel supplies to these two countries. The media claimed that taking into account the deteriorating economic equations and other consequences, Germany, Austria, and Slovakia immediately started talks with Russia. Leading fuel companies Uniper from Germany and OMV from Austria have expressed willingness to pay in Roubles by opening their accounts in Russian banks.

It has been informed that the leading Italian fuel company Eni also has opened a dialogue with Russia. Slovakia had already clarified that it would have to accept Roubles payment. Hungary was the first European country to accept the term of payments in Roubles. Greece has to make payment of its fuel bill to Russia at the end of next month, and it is being claimed that Greece will also follow the footsteps of the other countries.

Meanwhile, indications are that the tensions in Europe may fester further over the Russian fuel issue. Poland has adopted an aggressive stand on the issue and has demanded the imposition of financial penalties on the countries accepting Rouble payments.