Rouble gas payment mechanism: implications for gas supply contracts

On 31 March 2022, President Putin signed a Decree on the Special Procedure for the Fulfilment by Foreign Buyers of Obligations to Russian Natural Gas Suppliers, which, in essence, requires buyers from ‘unfriendly’ countries to pay in roubles for gas delivered to them after 1 April 2022. The key objective of this comment is to discuss the impact of the new payment mechanism introduced by the Decree on long-term gas supply agreements (GSAs).

By: Agnieszka Ason