G7 dismisses Russia\`s demand for gas payment in rubles

The Group of Seven (G7) major economies rejected Russian President Vladimir Putin's demand to pay for gas in rubles_ German Economy Minister Robert Habeck has said.

Putin had said 'unfriendly' countries would have to pay for Russian gas in Russia's own currency_ ruble.

"All G7 [energy] ministers agreed that this is a unilateral and clear breach of the existing agreements_" Habeck said on Monday.

Currently Germany holds holds the presidency of G7.

Hebeck also added_ "Payment in rubles is not acceptable and ... we call on the companies concerned not to comply with Putin's demand."

German Chancellor Olaf Scholz also insisted that "the contracts we know lay down the euro as payment currency and the companies will pay according to the contracts they have signed."

So far_ European states and companies have paid in euros and US dollars for Russian gas supplies.

Earlier on Monday_ reporters asked Kremlin spokesman Dmitry Peskov if they rejected the demand_ what would be the response from Russia. "We clearly aren't going to supply gas for free_" Peskov replied.

"In our situation_ it's hardly possible and feasible to engage in charity for Europe_'' he said.

Russian news agency RIA quoted Russian lawmaker Ivan Abramov as saying a refusal by the G7 to pay for Russian gas in rubles would lead to an unequivocal halt in supplies.

Besides the apparent tit-for-tat after the West imposed a series of massive sanctions on Russia_ Moscow's demand for rubles is also seen as a bid to save its economy.

Economists believe that the decision could help the struggling Russian currency to recover_ which has fallen massively in value following news of the Russian invasion of Ukraine_ followed by Western sanctions.