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Russian company Gazprom proposes that LNG gas be paid for in Rubles

According to Infrax news agency, The Russian gas producer Gazprom has proposed expanding its rouble for the gas scheme for the pipeline gas would also include liquefied natural gas (LNG). The deputy department head Gazprom Kirill Polous has proposed this scheme, and this move comes after Russia moved to seize operations of the Sakhalin-2 LNG plant last week in retaliation for Western sanctions. The rights over the Sakhalin Energy investment will now be with Russian President Vladimir Putin.

While Japanese trading companies like Mitsui and Mitsubishi hold just under 50% of Sakhalin Energy, 40 billion metric cubic tons of gas supply comes from Shanklin-2 and Novatek's Yamal Energy plant, which is Russia's largest LNG plant, due to which now Russia accounts for around 8% of global LNG supply. Not just Europe, Russia also supplies LNG gas to Asia and Spain. According to the state tax service, Moscow earned $7.3 billion from its LNG exports and $55.5 billion from piped gas exports.

As the west has imposed sanctions on Moscow, it demands the payments in the Rubles. But while the western countries agree to this demand of Moscow, will Asia agree to pay in Rubles?

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