Poland’s PGNiG won’t pay for Russian gas in rubles, CEO says

Poland says there is no “possibility” of paying for Russian gas in rubles, citing contractual agreements.

PGNiG, which is Poland’s largest oil and gas company, says it has a deal in place with Russian giant Gazprom, the terms of which stipulate the mode of payment for imports.

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In comments captured in local media, PGNiG SA Chief Executive Officer Pawel  Majewski said the company will not change this payment method.

“There is no such possibility. The contract states the method for gas payment. We’ll be fulfilling the contract in keeping with its provisions,” the PGNiG CEO said on Thursday.

Poland’s retort comes a day after President Vladimir Putin asked Russia’s Central Bank to work on modalities to have “unfriendly” countries pay for Russian natural gas in the local currency.

Russia will also accept bitcoin from “friendly” countries

While countries that have imposed sanctions on Russia will need to buy rubles from the MOEX, those deemed friendly will be allowed to pay for imports in their national currencies.

Pavel Zavalny, chairman of Russia’s State Duma Committee on Energy, also confirmed Thursday that the country would accept Bitcoin payments. He noted that China and Turkey among other countries had been offered time to “switch payments to national currencies”.

“If they want bitcoin, we will take bitcoin,” he said during a press conference.

Russia is looking to accept “hard money” payments, which in this case is gold, Zavalny added.

It remains to be seen which other EU countries will follow in Poland’s footsteps regarding Moscow’s move. Italy has reportedly said the requirement for “unfriendly” countries to pay in rubles would constitute a breach of contract.

The Russian stock market reopened Wednesday and closed 4.37% up, while the ruble looked to steady against the dollar at 0.0098.