Washington Post: Europe has surrendered to Russia over gas prices.
The Washington Post reports that European companies have surrendered to Russia in a bid to pay for natural gas.
The Washington Post reported on Tuesday that European energy companies appeared to have surrendered to Russian President Vladimir Putin’s demand for natural gas prices with a new payment system.
The Washington Post writes that European gas companies have backed down to avoid gas cuts, giving Putin a chance to declare victory in a propaganda war.
Russia has previously asked “unfriendly countries” to pay for the natural gas purchased from the country in rubles. The Washington Post writes that the new payment system requires the opening of two accounts in Gazprombank. This payment system allows Europeans to claim that it technically pays the price of gas in euros, but on the other hand, Russia can also say that it receives the money in rubles.
Some economics and energy experts believe that Russia’s goal in insisting on a ruble gas price is more than strengthening foreign exchange resources, forcing Europeans to act on Moscow’s orders.
The Washington Post writes that EU member states are very sensitive about the idea that they might violate sanctions against Russia.
The surrender of European countries to Russia, according to many other experts, could lead to the beginning of the weakening of the Western sanctions system.
The United States and its allies, the European Union and a number of Western nations, have imposed extensive sanctions on Russia’s economy and financial institutions since Russia began its operations in Ukraine. The difference between the current sanctions and the post-2014 targeted sanctions year is that the restrictions are more comprehensive this time around. Among the sanctions that have sparked a full-blown economic war with Moscow is the expulsion of some Russian banks from Swift’s messaging system, which is considered more important and effective.
