Daily Management Review

Putin Instructs Experts To Work On Trade Payments With Allies And 'Enemies'


Putin Instructs Experts To Work On Trade Payments With Allies And 'Enemies'
Russian President Vladimir Putin established an international payments working committee, tasked with determining terms for transactions with "unfriendly" countries.
Putin warned in March that Russia, the world's largest natural gas producer, would oblige hostile countries to pay for fuel in roubles by creating accounts with Gazprombank and making payments in euros or dollars, which would then be translated into Russian currency.
When Poland and Bulgaria failed to comply, Russia's Gazprom shut them off last month. Anyone who refuses to accept the new payment terms would face the same consequences, according to the Kremlin.
The working group will come up with "an infrastructure for international payments, including in Russian roubles, with trading partners from foreign states and territories that carry out unfriendly actions against Russia," the order said.
It would also investigate payment conditions in roubles and other national currencies with friendly countries, like as China and India, though no names were given.
The panel, which will be led by presidential adviser Maxim Oreshkin and will include top officials like Central Bank Governor Elvira Nabiullina, will also be entrusted with identifying ways to mitigate the risks connected with the freezing of over half of Russia's $640 billion in foreign reserves.
Russia has been sanctioned heavily by Western countries for sending troops into Ukraine on February 24. Moscow claims to be conducting a "special military operation" in Ukraine to disarm the country and rid it of "dangerous nationalists."
Russia is enacting counter-sanctions and has authorised a list of "unfriendly" countries that includes the US, Canada, the United Kingdom, and European Union members.