Shell Can't Buy Moscow Gas Because Of Anti-Russian Stance UK, Kremlin: Here Are The Side Effects

JAKARTA - The inability of British-headquartered multinational oil and gas company Shell to buy Russian gas is a side effect of London's anti-Russian policies, Kremlin spokesman Dmitry Peskov told TASS.

Russia has repeatedly warned that all countries, entities, and individuals will suffer repercussions if they adopt a hostile attitude, especially if they impose sanctions related to the invasion of Ukraine.

"London wants to be the leader of everything anti-Russian, even wants to be ahead of Washington (in this case). Well, here's the side effect," Peskov said, citing TASS, April 2.

Unlike other EU countries, the UK imposed sanctions on Gazprombank and is now unable to pay for Russian gas, even in rubles.

Previously, Bloomberg reported on Friday, Shell will most likely not be able to pay for Russian gas this month, as the UK has imposed sanctions on Gazprombank.

Last week, Russian President Vladimir Putin asked for payments to transfer gas supplies to hostile countries to rubles, saying Moscow would refuse to accept payments for such contracts in discredited currencies, including dollars and euros.

He also tasked the government with giving instructions to Gazprom regarding amendments to the current contract. On March 31, Putin signed a decree on the rules of gas trade with hostile countries, establishing a new system of contract payments.

The new procedure for payments for Russian pipeline gas in rubles by buyers from hostile countries came into effect on April 1. The buyer is required to open a special ruble account, as well as foreign currency with Gazprombank to pay for gas supplies.

Currency conversion will be carried out on Russian exchanges. In case of incomplete payment, Russian customs are authorized to prohibit delivery. The government commission for the control of foreign investment in Russia has the right to issue exceptions to this rule for individual buyers.