- While
Putin has called forenergy payments to be made inrubles , the EU warns this would violatesanctions . - The EU also said that trading in rubles would give
Russia total control over energy transactions and exchange rates.
President Vladimir Putin has called for "unfriendly countries" to pay for Russian energy commodities using rubles or risk being cut off, but the
The Commission said making payments in the Russian currency would breach the sanctions the EU has imposed on Russia's central bank and its proxies.
The European Commission, a branch of the EU, concluded that countries shouldn't abide by Putin's call for rubles as the new process would give Russia total control over transactions, as well as leverage over currency exchange rates, per $4.
The Commission's analysis of Putin's edict found that it would create a new legal situation, and significantly change the current transaction procedure, a source told Bloomberg.
Additionally, the new process would introduce new costs to the buyer, which would be subject to Russia's preferences.
Most member states have said they won't be paying for any Russian energy supplies in rubles, however.
Meanwhile, Russia is becoming increasingly cut off from the global financial system. The bulk of its central bank's $600 billion in foreign currency reserves have been frozen.
Last week, Russia transferred $4 to make bond payments after the US Treasury $4.
Now, in the latest sign that Moscow is nearing a historic default, holders of Russian bonds have said they $4.
Rating agency S&P Global last week put Russia in the "selective default" category, and in May, the world's biggest