The EU and Russia are reaching a dead end over Russian gas payment methods. Putin demands payment for gas supplies in rubles.
31.3. 21:46 • Updated March 31st. 22:18
If Russia shuts off its gas taps from European countries, the blow to the Western economy would be dramatically greater than the continuation of the current sanctions situation, says the director general of the Ministry of Finance Mikko Spolander.
– The situation could end if the Russians refuse to sell gas, or by a joint European decision refusing to buy Russian energy.
Spolander, who visited A-Talk on Thursday, reminds that Europe has a key role to play in influencing Finland. Five percent of Finland’s exports go to Russia and 70 percent to Europe.
– If we look at which region’s economic recession is affecting Finland the most, it is, of course, Europe.
According to Spolander, a complete cessation of trade with Russia would reduce Finland’s growth by 1.5 percentage points. It would not yet drive the Finnish economy into great difficulty. If Europe were to go into recession due to the cessation of energy supplies, it would be even more affected.
– The situation would also have a huge impact on trust. Households would be even more frightened than they are now, as would companies that would stop investing, Spolander says.
Director of Laboren (former Wage and Salary Research Institute) Mika Maliranta considers Russia’s announcement of a ruble gas trade to be part of an economic warfare.
– In economic warfare, Russia is really weak compared to the West. Russia has pushed itself into the corner, and the cornered player is playing harder. Russia has surprised in the past, Maliranta ponders.
President of Russia Vladimir Putin has warned that Russia will suspend gas supplies to buyers who do not pay in rubles for gas sold by state-owned gas company Gazprom.
According to Putin’s decree, unfriendly countries will have to pay their gas bills in rubles instead of euros from Friday. Russia includes EU countries, such as Finland, as such unfriendly countries
Western countries would have to pay for supplies through Gazprom’s bank, which would strengthen the position of the ruble plagued by economic sanctions.
European countries have refused to trade the ruble because they pay for Russian gas mainly in euros. Western buyers believe that demanding rubles violates existing gas supply agreements.
In A-Talk, the chief economist of the employment pension company Elo was also discussing the economic situation in Finland and Europe Tiina Helenius and CEO of Etla, the Finnish Business Research Institute Aki Kangasharju.