Russia Could Manipulate Exchange Rates in Its Favor: European Commission on Paying for Gas in Rubles

The European Commission (EC) has stated that Russian President Vladimir Putin's decree mandating payment for gas supplies in rubles from "unfriendly countries" violates EU sanctions. Bloomberg reports this citing a source, as noted by RT.

The report mentions that in April, the EC provided EU countries with a preliminary legal analysis of Putin's decree. “Putin's decree significantly alters the procedure and creates a new legal situation,” the agency's source said.

The EC suggests that Russia will be able to control transactions and manipulate exchange rates to its benefit. “This mechanism will undermine the restrictive measures that the European Union has undertaken against... the Russian government and the Central Bank,” the source added.

It is noteworthy that on March 31, Putin signed a decree regarding gas trade with unfriendly countries.