Vladimir Putin's deadline has come and gone and Russian natural gas is still flowing to Europe
The Russian president delivered an ultimatum Thursday to"unfriendly" nations to pay for their energy in rubles starting April 1 or risk being cut off from vital supplies. Was that a bluff?It's too early to say, but Kremlin spokesman Dmitry Peskov said Friday that Russia would not turn off gas supplies to Europe immediately.Putin's high-stakes threat has sent shockwaves through Europe, which cannot keep its economy running for long without Russian energy.
"Nevertheless, the new proposed payment policy for gas exports appears to be one factor that has contributed to a sharp rebound in Russia's currency in recent weeks," wrote Eurasia Group analysts in a report this week.How has Europe responded?Germany, France and other EU governments have rejected the Kremlin's ultimatum, insisting they won't be "blackmailed" by Moscow into changing the terms of existing contracts.
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