On Friday, Russia will only take payment for gas in the country own’s currency.

Russian President Vladimir Putin has signed a decree related to the matter, he says in a speech broadcast Thursday.

Contracts will be terminated, should buyers to pay in rubles, he adds, according to Reuters.

Putin demands that nations seeking to buy Russian gas open accounts in Russian banks from which they must pay for gas in rubles by April 1.

”If such payments are not made, we will consider this a default on the part of buyers,” says Putin.

”That is, existing contracts will be stopped.”

He further notes that if buyers live up to the new demand, Russia will continue to supply gas as planned and at agreed prices.

Shortly after Putin’s announcement, governments in Germany and France rejected the demand.

German Minister of Economic Affairs Robert Habeck says that he has yet to see the decree that Putin claims to have signed.

He calls the move an attempt at ”blackmail” and adds that Germany is prepared for all scenarios, including a stop to Russian gas deliveries to Europe.

In a similar statement, French Minister of Finance Bruno Le Maire dismisses Russia’s claim for payment in rubles, according to Reuters.

In total, Russia supplies around a third of Europe’s gas.

Danish utility Ørsted has a contract with Russian company Gazprom on offtake of gas. Ørsted’s contract runs until 2030.

Today Ørsted doesn’t pay in rubles, writes Danish media Berlingske, adding that Wednesday afternoon, Ørsted had not yet received word from Gazprom regarding the technical details on how to live up to the demand for transacting in rubles.

Putin’s decision to demand ruble payment has strengthened the Russian currency.

The ruble took a nosedive after Western nations imposed sanctions in the wake of Russia’s invasion of Ukraine on Feb. 24.

So far, Wester nations have resisted the demand, saying it amounts to a breach of existing contracts stipulating dollar or euro payments.

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Ruble-for-gas announcement creates uncertainty for Ørsted’s gas contract

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