The Azerbaijan State Oil Company (SOCAR) has denied reports that Baku will pay Moscow in rubles for imported gas.
Russian gas is currently supplied to Azerbaijan under a seasonal exchange of natural gas agreement signed in July 2021 between the state-run company Azercontract and the Gazprom Group.
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The agreement is valid until 2023. The contract calls for Azerbaijan to supply gas to Russia during the summer season, and Russia to supply gas to Azerbaijan during the winter season.
About 30% of Russia’s trade with Azerbaijan is conducted in rubles, and the architecture of Russian-Azerbaijani economic ties in general is not vulnerable to external negative factors.
Putin instituted a new payment system for Russian gas for consumers from hostile countries. Buyers must make a payment to Gazprombank in the currency specified in the contract, which is then converted into rubles on the stock exchange.
The final payment to the supplier is made in Russian currency. According to presidential aide Maxim Oreshkin, such a scheme allows the Kremlin to transfer as many foreign economic operations as possible to its jurisdiction.
